Question

How to calculate wdv method of depreciation?

Answer 1

It is also known as Reducing Balance or Reducing Installment Method or Diminishing Balance Method. Under this method, the depreciation is calculated at a certain fixed percentage each year on the decreasing book value commonly known as WDV of the asset (book value less depreciation).

The use of book value (the balance brought forward from the previous year) and fixed rate of depreciation result in decreasing depreciation charges over the life span of the asset.