Understanding and Calculating Depreciation
- Price: £3.60
- Published: October 2014
- Type: Business Information Factsheet
- Format: PDF
Any equipment owned by a business will be subject to wear and tear that will eventually reduce its value. This must be accounted for as a cost to the business, known as the depreciation charge.
This factsheet explains what depreciation is and how it is accounted for. It outlines the types of assets that depreciation charges apply to and discusses different methods of calculating the depreciation charge of an asset. It also introduces capital allowances and capital replacement budgeting.