These may be specified by law or accounting standards, which may vary by country.
There are several standard methods of computing depreciation expense, including fixed percentage, straight line, and declining balance methods. Depreciation expense generally begins when the asset is placed in service. For example, a depreciation expense of per year for historia do basketball resumo years may be recognized for an asset costing In determining the profits net income from an activity, the receipts from the activity must be reduced by appropriate costs.
One such cost is the cost of assets used but not immediately consumed in the activity.
Depreciation is any method of allocating such net cost to those periods in which the organization is expected to benefit from use of the asset. The asset is referred to as a depreciable asset. Depreciation is technically a method of allocation, not valuation, even though it determines the value placed on the asset in the balance sheet.
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