实用会计英语 第二版 高职高专会计与电算化会计类 李海红Chapter 16 Plant Assets.pptVIP

Long-term assets Tangible assets Depreciation Depreciation Cost Cost Cost Cost Cost Residual value Depreciable cost Estimated useful life Methods of Computing Depreciation Straight-line Method Production Method Accelerated Methods Straight-line Method Straight-line Method Straight-line Method Straight-line Method Straight-line Method Straight-line Method Straight-line Method Production Method Production Method Production Method Production Method Production Method Accelerated Methods Accelerated Methods Accelerated Methods Accelerated Methods Declining-balance method Declining-balance method Declining-balance method Declining-balance method Declining-balance method Double-declining-balance method Double-declining-balance method Sum-of-the-Years’-Digits Method Sum-of-the-Years’-Digits Method Sum-of-the-Years’-Digits Method Accumulated depreciation Accumulated depreciation Accumulated depreciation Accumulated depreciation Accelerated method has another name—descending depreciation expense method. Accelerated methods result in that relatively large amounts of depreciation will be recognized in the early years of use, while relatively small amounts of depreciation in the later years. This method comes along with the prudence principle. More depreciation will be allocated to the early years than to later years. It is along with matching rule that more expenses are allocated to more benefits or revenue. Examples of accelerated methods Declining-balance method Double-declining-balance method Sum-of-the-years’-digits method Declining-depreciation-ratio method Under the declining-balance method, depreciation is computed by applying a fixed depreciation rate to the book value of the plant asset at the beginning of a year. This method will result in higher depreciation charges during the early years of useful life and lower depreciation charges during the later years of useful life. C----original cost/acquisition cost S1----carrying va