Calculating deprecation

Why while calculating deprecation we do not consider the change in prices of the machinery in the market i.e fluctuation in prices in market? As we consider the accounting period one of the concepts

Showing Answers 1 - 9 of 9 Answers

Anand

  • May 15th, 2012
 

How will Application know the current market price of your machinery. you need to do revaluation to asset according to market fluctuation and then submit the Deprecation.

  Was this answer useful?  Yes

jayaprakash mc

  • Aug 12th, 2015
 

We have to account for all anticipated losses but not profits. If the usefulness of the asset has gone down due to technical or behavioral changes, we are at liberty to provide additional deprecation. How ever we should not consider appreciation in market value.

  Was this answer useful?  Yes

Hamayun

  • Mar 31st, 2016
 

According to the international accounting standards we take the value of an asset whichever is less either market value or actual value.

  Was this answer useful?  Yes

Give your answer:

If you think the above answer is not correct, Please select a reason and add your answer below.

 

Related Answered Questions

 

Related Open Questions