Difference between Straight Line And Written Down Value
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Explanation:
In straight-line method, depreciation is calculated on the original cost. On the other hand, in the written down value method, the calculation of depreciation is on the basis of written down value of the asset. ... In contrast, the amount of depreciation in WDV method diminishes every year.
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In straight-line method, depreciation is calculated on the original cost. On the other hand, in the written down value method, the calculation of depreciation is on the basis of written down value of the asset. The annual depreciation charge in SLM remains fixed during the life of the asset.
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