Common Error in Depreciation Computation
| DMS-GBMP | Special Issue | July-2018 | Published Online: 30 July 2018 PDF ( 257 KB ) | ||
| DOI: https://doi.org/10.5281/zenodo.1334470 | ||
| Author(s) | ||
K. Ravi Kiran Yasaswi
1;
Dr. A. Udaya Shankar
2
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1Assistant professor, Lakireddy Balireddy College Of Engineering (Autonomous) School Of Management Studies, Affiliated to JNTUK, Mylavaram (India) 2Associate Professor, Koneru Lakshmaiah Education Foundation, Guntur District, Andhra Pradesh (India) |
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| Abstract | ||
Depreciation is one of the significant factor to be considered in the financial statements. It provides to recover the cost of the asset over the life of the asset. While computing depreciation one should mind useful life of the asset, nature of the asset, method of depreciation and existing statutory requirements. Many may not be ware of underlying complications while calculating depreciation. To be more precise in case of reducing balance method many are considering inappropriate rate of depreciation. One should be cautious about the statutory requirements, which might lead to regrets. |
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| Keywords | ||
| Written Down Value(WDV), Reducing Balance Method, Residual Value, Useful Life, Rate of depreciation | ||
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