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Which depreciation is superior WDV or SLM and Why?

Asked by: huzefabhori | Member Since Nov-2010 | Asked on: Nov 8th, 2010

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Sohaib Abbas

Answered On : Mar 25th, 2011

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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

Answered On : 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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