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.
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.
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