Asked by Dhabole Sharavanin on Jun 24, 2024
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Depreciation is the process of allocating a long-lived asset's cost over its productive life.
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time due to use and wear.
Long-Lived Asset
Assets with a useful life extending beyond one year, typically including property, plant, and equipment, and used in the operation of a business.
Productive Life
The expected period during which an asset is able to provide economic benefits or contribute to revenue generation.
- Gain an understanding of the diverse approaches to depreciation, the process of computing them, and their influence on financial documentation.
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Learning Objectives
- Gain an understanding of the diverse approaches to depreciation, the process of computing them, and their influence on financial documentation.
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