Depreciation is the reduction in value of a long term asset due to wear and tear. The time value of money calculations can be used to calculate depreciation using the reducing balance depreciation method.
Last modified December 19th, 2019
Depreciation
Units of Activity Depreciation Calculator
Units of Production Depreciation Calculator
Units of Production Depreciation Method
Changes in Depreciation Estimate
Depreciation is calculated based on the chosen method of depreciation, and on estimates of an assets useful life and salvage value.
When there is an indication that a change in depreciation method, salvage value, or estimated useful life is necessary, then the business should revise its depreciation estimates accordingly.
Last modified December 18th, 2019
Depreciation Depletion and Amortization
The terms depreciation depletion and amortization are often used to mean the same thing, the reduction in the value of an asset.
Most assets have a limited life and therefore reduce in value over time. An estimate of this reduction in value is charged as an expense to the income statement account each accounting period.
To be more specific about the terms depreciation depletion and amortization, we will look at an example of each.
Last modified June 12th, 2020
Declining Balance Depreciation Calculator
Depreciation is a business expense reflecting the wear and tear of long term assets as they are used within the business.
The Excel declining balance depreciation calculator, available for download below, is used to compute the annual depreciation charge using the declining method, based on a calculated rate designed to write the asset down to its salvage value over its useful life.
Last modified July 16th, 2019
Double Declining Balance Depreciation Calculator
Depreciation is a business expense reflecting the wear and tear of long term assets as they are used within the business.
The Excel double declining balance depreciation calculator, available for download below, is used to compute the annual depreciation charge using the double declining method.
Last modified July 16th, 2019
Straight Line Depreciation Calculator
Depreciation is a business expense reflecting the wear and tear of long term assets as they are used within the business.
The Excel straight line depreciation calculator, available for download below, is used to compute the annual depreciation charge and implied depreciation rate for an asset using the straight line method.
Last modified January 31st, 2023
Declining Balance Depreciation
Straight Line Depreciation
