Sohaib Abbas

 Profile Answers by Sohaib Abbas 

• Mar 25th, 2011

 

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.  

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.