Accounting For Managers - Revenue Recognition
Depreciation Introduction and Objectives - Accounting for Managers
With the passage of time, all fixed assets lose their capacity to render services, the exceptions being land and antics. Accordingly, a fraction of the cost of the asset is chargeable as an expense in each of the accounting periods in which the asset renders services. The accounting process for this gradual conversion of capitalised cost of fixed assets into expense is called depreciation. This lesson explains the different aspects of depreciation.
Learning Objectives
After reading this lesson, the reader should be
able to:
ՖՖ Understand
the meaning of depreciation.
ՖՖ Know the
causes of depreciation.
ՖՖ Appreciate
the need for depreciation accounting.
ՖՖ Evaluate
the methods of depreciation.
2.1.3
Contents
Meaning Of Depreciation
Causes Of Depreciation
Need For Depreciation Accounting
Methods Of Depreciation
Straight Line Method Of Depreciations
Diminishing Balance Method
Annuity Method Of Depreciation
