en:asset
Differences
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| Both sides previous revision Previous revision Next revision | Previous revision Next revision Both sides next revision | ||
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en:asset [2022/07/04 10:37] triinp [5. Fixed asset depreciation] |
en:asset [2022/07/04 10:38] triinp [5.1.3. Units of production method] |
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| - | ==== 5.1. Depreciation methods ==== | + | ==== 6.1. Depreciation methods ==== |
| The following depreciation methods are used | The following depreciation methods are used | ||
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| - | ===5.1.1. Straight line method=== | + | === 6.1.1. Straight line method === |
| Depreciation rate is calculated from purchase price by straight line method. | Depreciation rate is calculated from purchase price by straight line method. | ||
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| Fixed asset with purchase price of 120,000 is depreciated at 20% per annum using the straight line method, depreciates permanently in 5 years (every year 24 000, every month 2000). | Fixed asset with purchase price of 120,000 is depreciated at 20% per annum using the straight line method, depreciates permanently in 5 years (every year 24 000, every month 2000). | ||
| - | ===5.1.2. Diminishing balance method=== | + | === 6.1.2. Diminishing balance method === |
| With diminishing balance method the fixed asset base value decreases each year by the depreciation amount. | With diminishing balance method the fixed asset base value decreases each year by the depreciation amount. | ||
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| - | ===5.1.3. Units of production method=== | + | === 6.1.3. Units of production method === |
