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متابعة

What is the difference between depreciation and wear and tear?

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تم إضافة السؤال من قبل Simon NJAUMBIRE
تاريخ النشر: 2019/01/07
Abid Ali
من قبل Abid Ali , Accountant , STC

Depreciation is the planned, reduced value of an asset over time, due to wear and tear. An asset is defined as an expenditure that is used through multiple future accounting periods. If an asset does not have a utility, then it's considered an expense.

Wear and tear is damage that naturally and inevitably occurs as a result of normal wear or aging. Wear and tear is a form of depreciation which is assumed to occur even when an item is used competently and with care and proper maintenance.

Golam Kibria FCMA
من قبل Golam Kibria FCMA , Manager Accounts And Finance , Seacom Group & Premier Cement Mills Ltd

Wear and Tear and Depreciation are essentially the same thing, but for tax and accounting purposes respectively. You can write off assets used for business purposes according.

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