How does depreciation treat in financial statements?

[Simpley]

Depreciation is a reduction in the value of fixed assets. so to adjust for depreciation in balance sheet, you remove the total amount of depreciation (otherwise called accumulated depreciation) from the total value of the assets. The remaining amount is known as Net Book Value.

 

[Samuel77]

Depreciation is can also be stated income just like any other expenses or issues that arise during production or sales, depreciation can also he stated in his own private side

 

[Abbeyola]

Dear all as most of you know that depreciation is the annual wear and tear in your fix asset or we can say deduction in original value of the long term assets. There are three to four methods of calculating it. On the one side it is deducted from asset in balance sheet that is one entry.
As every account is treated or written twice.
Where does it treated othen than in Balance sheet?

Depreciation can be treated, by setting aside some certain amount of money regularly from an asset, you know will soon wear and tear.

 

[Akinwale701]

Dear all as most of you know that depreciation is the annual wear and tear in your fix asset or we can say deduction in original value of the long term assets. There are three to four methods of calculating it. On the one side it is deducted from asset in balance sheet that is one entry.
As every account is treated or written twice.
Where does it treated othen than in Balance sheet?

Depreciation is a decrease in the value of an asset, excluding land. It is taken into consideration at the end of the accounting year when preparing the statement of financial position

 

[Setho]

It is very normal that values of your business items and machines depreciate over a time and it is very important that you put it at the back of your mind. You should always make preparations for newer equipments as soon as you believe the previous ones are getting older.

 

[Nurudeen]

Depreciation in accounting is what Business owner really need to know because without this they might have problem with balancing investment and other form of assets in the banking industry.

 

[Victor001]

Every economy is faced at some point with inflation and depreciation, the major take should be how to handle the situation, measures to put in place to curb the depreciation.

 

[Muhammadawais]

Depreciation is a form of cost that reduces the carrying value of an asset as it is used. When it comes to managing the carrying value of an asset on their books, businesses have a few options. Many businesses would use one of several depreciation strategies, but revaluation is also a viable choice.
Depreciation is a process of allocating the expense of a financial asset over time in accounting.

 

[Jumoke12]

Dear all as most of you know that depreciation is the annual wear and tear in your fix asset or we can say deduction in original value of the long term assets. There are three to four methods of calculating it. On the one side it is deducted from asset in balance sheet that is one entry.
As every account is treated or written twice.
Where does it treated othen than in Balance sheet?

Depreciation in financial accounting terms brings about reduction in the value of assets at the end of the accounting year. This may be due to wear, tear, usage, and passage of time.

 

[Hopey]

Depreciation is treated like every other expenses in business. Some times it can come in as profit or loss especially if it is involved in the production processes

 

[btaliat]

To be frank, learning can be we stop. I only know depreciation but doesnt even know the ways of calculating it. But thanks for bizdustry, I am glad I am part of this family.

 

[Bookwormlux]

Depreciation is the reduction of the value of an asset. Simply means that an asset after being acquired and used woul not have the same value as a new one again in months or years. Depreciation is charged as a current liability in the statement of account.

That is what some people fail to realize. They don't consider how these liabilities don't add value to them but only take out cash from them, thus running into losses.

 

[Eodine]

That is what some people fail to realize. They don't consider how these liabilities don't add value to them but only take out cash from them, thus running into losses.

Which is one of the reasons we need financial experts in our lives to help us better navigate our expenses as it can be difficult to differentiate between what would bring money in and what is an expense.

 

[Alexandoy]

The depreciation of assets has a rate that depends on the type of asset. A car depreciates fast than a house or building. However, real estate (that includes the land) can have no depreciation in the accounting books depending on the economy of the nation. In our country real estate always appreciates in value so in the accounting books it is an earning asset.

 

[Eodine]

The depreciation of assets has a rate that depends on the type of asset. A car depreciates fast than a house or building. However, real estate (that includes the land) can have no depreciation in the accounting books depending on the economy of the nation. In our country real estate always appreciates in value so in the accounting books it is an earning asset.

Depreciation in accounting actually has to do with value so if an asset starts to loose value it becomes a liability so it is important to seek experts opinion on these things.

 

[Richard92]

On the income statement, depreciation is usually shown as indirect, operating expenses. It is an allowable expenses that reduces a company's gross profit along with other indirect expenses like administrative and marketing cost.

Yes I agree with your statement depreciate is Shown indirectly, operating expenses. Do you reduce the gross profit of the company indirectly.

 

[Bookwormlux]

Which is one of the reasons we need financial experts in our lives to help us better navigate our expenses as it can be difficult to differentiate between what would bring money in and what is an expense.

Not necessarily experts, as individuals we ought to also improve our lives by reading books that would give us enough financial education that would help us make meaningful financial decisions.

 

[Eodine]

Not necessarily experts, as individuals we ought to also improve our lives by reading books that would give us enough financial education that would help us make meaningful financial decisions.

True, I have always said that reading books can go one attain a depth of knowledge that can help you see into the reader's mind to better understand the principles being stated.

 

[Bookwormlux]

True, I have always said that reading books can go one attain a depth of knowledge that can help you see into the reader's mind to better understand the principles being stated.

Sure, books have the deepest secret to success in life. So many people are not willing to read but want to succeed, so they keep making mistakes due to ignorance.

 

[GIFTMICHAEL]

At times depreciation is act of inflation, and deflation. When the price of commodities go up, and people grow frustrated to buy at that moment plenty, it also causes depreciation around business enterprise. Unforeseen nature also makes a business to grow wear and tear, and looks shamble. That's why we plan ahead and wait for any downtime time in our business, knowing too well, we can still move ahead.