Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Which depreciation method is good, reduced or straight line?

user-image
Question added by Chandrasekhara Sankole , Finance Manager , Blue Camel Group
Date Posted: 2017/01/17
Ahmed mohsen
by Ahmed mohsen , Senior Accountant , Main Poly Clinic

The straight-line (SL) depreciation method is one of the easiest accounting methods of computing the depreciation expense of about any depreciable assets for a period. It spreads out evenly all cost associated with the purchase (initial cost) over useful life of the property. The simplicity of the straight-line depreciation method makes it understandable, reasonable, widely usable and acceptable. The SL deprecation accounting method is used commonly among different size and form of organizations especially smaller ones.

Mansoor Shahid
by Mansoor Shahid , Auditor , Middle East Auditing

1st of all it depends on the utilization of your Asset. If it's benefit is constant then straight line otherwise reducing balance method. However, a lot of companies are using reducing balance method because it gives reduced dep. charge as well as asset is not to be removed for long time as it's value doesn't goes null.

Depending on  the type of The assets and to the management policy towards the Tax regulatory . 

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.