Which depreciation is superior WDV or SLM and Why?

Questions by huzefabhori   answers by huzefabhori

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A.A 

We can decided which method of deprecation is best on the basis of usefulness (benefits) provided by the asset.
When we prefer SLM:-
we preferred SLM where the equal amount of  benefit is derived from the asset through the useful life of the asset. e.g A room's capacity of storing the goods remain same in each year weather old or new.
When we prefer DBM:-
we preferred DBM where resulting benefit from the asset diminishing (decreasing) year by year.  

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anoop singh

  • Aug 8th, 2011
 

WDV method is better method to calculate depreciation. In initial years cost of product reduced more and WDL record depreciation higher in initial years.

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