How does depreciation treat in financial statements?

[Eodine]

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.

There's this ancient saying of my teacher that if you want to hide something from an African keep it in a book, it wouldn't be read! This part of the world just prefers ignorance.

 

[Sheyemanu]

Well , in reply to your question in the above post concerning where depreciation of assets or goods is listed in the balance sheet, well i will be honest with you and tell you the truth that i really don't know but i know an accountant will answer this

 

[Trexxxy]

I think this is dependent on how you run your books. It is important to take note of depreciating assets every quarter to see whether you could work on it.

 

[Billy]

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 treated as money going out of the business' assets. It would fall right on the liabilities side. It will reduce the total equity of the business.

 

[tyrim88]

The depriciation is the devaluation of fixed assets of an operating cost in an organisation,it is calculated at the end of the year.When you are doing your book balance the loss is recorded as depriciation value of your asset and your profit is recorded differently as well.

 

[Setho]

Many places have the ways which they value used products hence how the product depreciates but you as a business owner should have put all this things into consideration.

 

[FreshKaz11]

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?

I don't really know much about business and how to balance depreciation in business as well,but I think you have giving me some insight about it in case I have mine to manage as well.

 

[Kelly5]

You mentioned that there are four aspects where depreciation is treated. You mentioned only balance sheet. I also know of the balance sheet only as where we treat depreciation values of assets.

 

[Josemendez]

Depreciation do come in businesses because it is unavoidable. The important thing is knowing how to manage it to avoid huge loss and perhaps seek a way to recover.

 

[Razor1911]

Depreciation do come in businesses because it is unavoidable. The important thing is knowing how to manage it to avoid huge loss and perhaps seek a way to recover.

Depreciation in business in unavoidable, but we can lower the effect of depreciation of for business by implementing proper management plan in that time. even in recession times some business can survive and make good profit, by managing their business properly.

 

[Kelly5]

You mentioned that there are four aspects where depreciation is treated. You mentioned only balance sheet. I also know of the balance sheet only as where we treat depreciation values of assets.

This balance sheet helps to explain and see the effect of depreciation on the business very much. Depreciation is always factored in the balance sheet because it reduces profit potentials due to the business

 

[Sotherefore]

I do not have any idea about this because in my school I didn't concentrate on business and accounting, am still expecting a business student to come and explain to us how this is done because I was doing pure science in School.

 

[Razor1911]

I do not have any idea about this because in my school I didn't concentrate on business and accounting, am still expecting a business student to come and explain to us how this is done because I was doing pure science in School.

actually no professional qualification is needed to understand the effect of depreciation in financial matters. In easy way, suppose, you have a car which you bought from 20000 dollars. But when you sell the car after 2 years you will get only 15000, so, your car has been depreciated by $5000 in two years.

 

[Sotherefore]

actually no professional qualification is needed to understand the effect of depreciation in financial matters. In easy way, suppose, you have a car which you bought from 20000 dollars. But when you sell the car after 2 years you will get only 15000, so, your car has been depreciated by $5000 in two years.

That is just a simple imagination as a set,but in business and accounting there's a complicated way they have been using to do the calculation of the total depreciation of a particular property, that is what I was expecting to learn.

 

[Senator]

People often forget to see the true importance of this aspect of financial research in their business account settlements. They must always have a place for depreciation to factor it in among all the costs incurred in the business

 

[Richard92]

This your write up looks complicated to me more like an accounting outline.

Quote of the day
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Post automatically merged: Feb 28, 2021

depreciation is not necessarily annual wear and tear in an assets. Its not until the year runs out before the record is noticed. As long as there is a constant record of each financial statement of production. They can deduce the depreciation from it.

Depreciation in financial statement is a negative value this shows that owner of the business is losing and not gaining, when this happen owner of the business need to restructure

 

[Dowenship]

Depreciation in financial statement is a negative value this shows that owner of the business is losing and not gaining, when this happen owner of the business need to restructure

OK... I think i now understand better, in short you mean the depreciation in business is when a business owner is unable to regain the financial strength of the business.

 

[Chibson]

I think sometimes depreciation is not about annual stuff but I think at the same time, sometimes it is even noticed when the business has not reached the year end.

 

[Richard92]

This your write up looks complicated to me more like an accounting outline.

Quote of the day
Stay focused: don't be distracted with worldly activities, it will stray you out of course of destiny: always stay focused

Post automatically merged: Feb 28, 2021

depreciation is not necessarily annual wear and tear in an assets. Its not until the year runs out before the record is noticed. As long as there is a constant record of each financial statement of production. They can deduce the depreciation from it.

Depreciation on most times it hurts to financial statement because it helps you to get low income and it reduces your financial statements and this will lead to bankrupt in a particular business setting.

 

[tyrim88]

Depreciation expense is reported on the income statement as any other normal business expense. If the asset is used for production, the expense is listed in the operating expenses area of the income statement. This amount reflects a portion of the acquisition cost of the asset for production purposes

The dericiation is usually calculated as a say part of a hidden expenses in a companys book and balance sheet.The depriciation is deducted from the fixed asset of the company and during accounts records it is calculated as expense.