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متابعة

What is most famous depreciation method?

A. Sum of digits

B. Reducing line 

C. Straight line

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تم إضافة السؤال من قبل Wasim khan wazir , Finance Specialist , Mott Macdonald
تاريخ النشر: 2015/08/11
Shamseer KM
من قبل Shamseer KM , HR Payroll Officer , Al Darwish Engineering W.L.L

Agree with the answers…

Written Down Value method (B. Reducing line) is the most appropriate method of calculating depreciation.

 

 

Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

The commonly used methods are Straight line and Reducing balance.

Feroz Bandukra
من قبل Feroz Bandukra , Finance Controller , Avenir Technologies FZE

The famous method of depreciation is Straight Line (C) method over the period of asset life, it is more convenient to calculate and easy to understand for others. 

However nature of asset usage and life is also considerable while choosing the method of depreciation. For example, if a machine life is10000 hours, and the hour usage is vary each month, we cannot use straight line method, instead we have to use sum of digits method. 

Malik Saleem Iqbal
من قبل Malik Saleem Iqbal , Assistant Finance Manager , Ali Zaid Al-Quraishi & Brothers Co LTD

Straight Line method

simple & easy to calculate

Subhajit Shome
من قبل Subhajit Shome , Manager , Premier Strategic Consultants FZE

Straight Line Method. It is simplest and most effective. 

Anoop Mohan
من قبل Anoop Mohan , Finance Manager , Arafa plywoods

written down method is the most relevant one, straight line is useful for cos whose asset will become useless and no value at all for instance furnace of a glass manufacturing company

Said Shaban
من قبل Said Shaban , Accountant , Tri State Materials Testing

The answer is: C- Straight line

Asad Ahmed
من قبل Asad Ahmed , Manager Finance & Company Secretary , Connect Communications Pvt. Ltd.

Most of the companies normally use Straight line method

Straight Line method is very famous because it is easy to understand 

Gyasuddin Ahamad Ansari
من قبل Gyasuddin Ahamad Ansari , Accountant , Shiv Shakti Dall Mill Pvt.Ltd.

reducing line is the most famous depreciation method

Faraat Akhtar
من قبل Faraat Akhtar

B. Reducing Balance Method or WDV method is practically applied in most of the organizations.

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