Accelerated Depreciation

 

 

Accelerated Depreciation

Accelerated depreciation can be defined as a depreciation method in which the cost of an asset is allocated over its useful life at a much faster rate when compared with the traditional straight-line method. Accelerated depreciation method allows more depreciation to be charged in the earlier years of an asset’s life and less depreciation in the later years of an asset’s useful life. It should be noted that the total amount of depreciation to be allocated over the asset’s useful life will remain the same irrespective of the depreciation method used. It can be said that only difference between the said depreciation methods is the timing of the depreciation.

 

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