what is the value involved in adopting the same method of depreciation year after year?
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Answered by
9
Hello!!
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There are many methods of charging depreciation :-
Like, 1. Straight line method
2. Written down value method.
For, SLM or Straight line method, we ll take the book value of fixed asset , book value:_ at the price assets were purchased.
whereas..
In WDV( Written down value method), The new cost after charging depreciation will be taken.
There ll always be change in the value of new depreciation value
_________________________________:___
☺️☺️☺️☺️☺️☺️☺️
_______________________________________
There are many methods of charging depreciation :-
Like, 1. Straight line method
2. Written down value method.
For, SLM or Straight line method, we ll take the book value of fixed asset , book value:_ at the price assets were purchased.
whereas..
In WDV( Written down value method), The new cost after charging depreciation will be taken.
There ll always be change in the value of new depreciation value
_________________________________:___
☺️☺️☺️☺️☺️☺️☺️
Vickypanjiyar:
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*for
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xD
Answered by
3
'Consistency' is one of three Fundamental accounting assumptions (Going concern,consistency and accrual)
Accounting Standard(1) - Disclosure of accounting policies' main motto is to help the users of financial Statements for better understanding of information present in such Statements..If the fundamental accounting assumptions are followed then there is no necessity to disclose them whereas if they are not followed then they ahould be disclosed..
Method of depreciation is an accounting policy..an accounting policy cannot be changed unless required by a statute, accounting Standard,for better presentation...So in contention with the 'consistency'concept ,same method of depreciation is followed year after year
Accounting Standard(1) - Disclosure of accounting policies' main motto is to help the users of financial Statements for better understanding of information present in such Statements..If the fundamental accounting assumptions are followed then there is no necessity to disclose them whereas if they are not followed then they ahould be disclosed..
Method of depreciation is an accounting policy..an accounting policy cannot be changed unless required by a statute, accounting Standard,for better presentation...So in contention with the 'consistency'concept ,same method of depreciation is followed year after year
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