Straight line - Revision history

imported>Doug Williamson: Layout.

2021-11-06T19:55:23Z

Layout.

← Older revision		Revision as of 19:55, 6 November 2021
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	Using a straight line basis of depreciation, the net book value of a retained asset will often fall to zero.		Using a straight line basis of depreciation, the net book value of a retained asset will often fall to zero.
	(But it would never be depreciated to a negative value ~~of course~~.)
			(But it would never be depreciated to a negative value.)

imported>Doug Williamson: Categorise.

2020-12-24T11:48:14Z

Categorise.

← Older revision		Revision as of 11:48, 24 December 2020
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	* [[Reducing balance]]		* [[Reducing balance]]
	* [[Sum of the digits]]		* [[Sum of the digits]]

			[[Category:Accounting,_tax_and_regulation]]

imported>Doug Williamson: Standardise calculs

2015-03-18T15:25:08Z

Standardise calculs

← Older revision		Revision as of 15:25, 18 March 2015
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	The total expected accounting cost:		The total expected accounting cost, in $m:

	= ~~$12m~~ - ~~$2m~~		= 12 - 2

	= ~~$10m.~~		= 10


	Allocated on a straight line basis over 4 years, the depreciation charge in each year would be:		Allocated on a straight line basis over 4 years, the depreciation charge in each year, in $m, would be:

	= ~~$10m~~ / 4		= 10 / 4

	= $2.~~5m.~~		= 2.5


	The net book value of the fixed asset would be ~~(at the end of~~ each year):		The net book value of the fixed asset in $m would be in each successive year:

	Year 1:		Year 1:
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	= 12.0 - 2.5		= 12.0 - 2.5

	= $9.~~5m.~~		= 9.5


Line 40:		Line 40:
	= 9.5 - 2.5		= 9.5 - 2.5

	= $7.~~0m.~~		= 7.0


Line 47:		Line 47:
	= 7.0 - 2.5		= 7.0 - 2.5

	= $4.~~5m.~~		= 4.5


Line 54:		Line 54:
	= 4.5 - 2.5		= 4.5 - 2.5

	= $2.~~0m.~~		= 2.0

imported>Doug Williamson: Standardise appearance of page

2015-03-18T14:26:02Z

Standardise appearance of page

← Older revision		Revision as of 14:26, 18 March 2015
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	The net book value of the fixed asset would be (at the end of each year):		The net book value of the fixed asset would be (at the end of each year):

	Year 1		Year 1:

	= 12.0 - 2.5		= 12.0 - 2.5
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	Year 2		Year 2:

	= 9.5 - 2.5		= 9.5 - 2.5
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	Year 3		Year 3:

	= 7.0 - 2.5		= 7.0 - 2.5
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	Year 4		Year 4:

	= 4.5 - 2.5		= 4.5 - 2.5

imported>Doug Williamson: Standardise appearance of page

2015-03-18T13:00:09Z

Standardise appearance of page

← Older revision		Revision as of 13:00, 18 March 2015
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	~~For example,~~		'''Example'''

	:a fixed asset has a cost of $12m		A fixed asset has a cost of $12m,

	:an expected disposal value of $2m		an expected disposal value of $2m,

	:and an expected useful life of 4 years.		and an expected useful life of 4 years.

	The total expected accounting cost
			The total expected accounting cost:

	= $12m - $2m		= $12m - $2m

	= $10m.		= $10m.


	Allocated on a straight line basis over 4 years, the depreciation charge in each year would be		Allocated on a straight line basis over 4 years, the depreciation charge in each year would be:

			= $10m / 4

	~~$10m/4~~ = $2.5m.		= $2.5m.


	The net book value of the fixed asset would be (at the end of each year):		The net book value of the fixed asset would be (at the end of each year):

	Year 1 = 12.0 - 2.5 = $9.5m.		Year 1

			= 12.0 - 2.5

			= $9.5m.


			Year 2

			= 9.5 - 2.5

			= $7.0m.


			Year 3

			= 7.0 - 2.5

			= $4.5m.


	Year ~~2 = 9.5 - 2.5 = $7.0m.~~		Year 4

	~~Year 3~~ = 7.0 - 2.5 ~~= $4.5m.~~		= 4.5 - 2.5

	~~Year 4 = 4.5 - 2.5~~ = $2.0m.		= $2.0m.

imported>Doug Williamson: Make branding consistent

2014-11-26T15:30:42Z

Make branding consistent

← Older revision		Revision as of 15:30, 26 November 2014
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	A basis of allocating total costs or income equally across successive time periods.		A basis of allocating total costs or income equally across successive time periods.

	~~For example, a fixed asset has a cost of $12m, an expected disposal value of $2m and an expected useful life of 4 years.~~

	The total expected accounting cost = $12m - $2m = $10m.		For example,

			:a fixed asset has a cost of $12m

			:an expected disposal value of $2m

			:and an expected useful life of 4 years.

			The total expected accounting cost

			= $12m - $2m
			= $10m.


			Allocated on a straight line basis over 4 years, the depreciation charge in each year would be

			$10m/4 = $2.5m.

	~~Allocated on a straight line basis over 4 years, the depreciation charge in each year would be $10m/4 = $2.5m.~~

	The net book value of the fixed asset would be (at the end of each year):		The net book value of the fixed asset would be (at the end of each year):
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	Year 4 = 4.5 - 2.5 = $2.0m.		Year 4 = 4.5 - 2.5 = $2.0m.


	Using a straight line basis of depreciation, the net book value of a retained asset will often fall to zero.		Using a straight line basis of depreciation, the net book value of a retained asset will often fall to zero.

imported>Doug Williamson at 08:34, 20 August 2013

2013-08-20T08:34:37Z

← Older revision		Revision as of 08:34, 20 August 2013
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	An estimation method which assumes a straight line relationship between the items under review.		An estimation method which assumes a straight line relationship between the items under review.

	Sometimes known as Linear interpolation.		Sometimes known as Linear interpolation.


	== See also ==		== See also ==

imported>Doug Williamson: Spacing 20/8/13

2013-08-20T08:34:17Z

Spacing 20/8/13

← Older revision		Revision as of 08:34, 20 August 2013
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	1.		1.

	A basis of allocating total costs or income equally across successive time periods.		A basis of allocating total costs or income equally across successive time periods.

	For example, a fixed asset has a cost of $12m, an expected disposal value of $2m and an expected useful life of 4 years.		For example, a fixed asset has a cost of $12m, an expected disposal value of $2m and an expected useful life of 4 years.

	The total expected accounting cost = $12m - $2m = $10m.		The total expected accounting cost = $12m - $2m = $10m.

Line 8:		Line 10:

	The net book value of the fixed asset would be (at the end of each year):		The net book value of the fixed asset would be (at the end of each year):

	Year 1 = 12.0 - 2.5 = $9.5m.		Year 1 = 12.0 - 2.5 = $9.5m.

	Year 2 = 9.5 - 2.5 = $7.0m.		Year 2 = 9.5 - 2.5 = $7.0m.

	Year 3 = 7.0 - 2.5 = $4.5m.		Year 3 = 7.0 - 2.5 = $4.5m.

	Year 4 = 4.5 - 2.5 = $2.0m.		Year 4 = 4.5 - 2.5 = $2.0m.

	Using a straight line basis of depreciation, the net book value of a retained asset will often fall to zero.		Using a straight line basis of depreciation, the net book value of a retained asset will often fall to zero.
	(But it would never be depreciated to a negative value of course.)		(But it would never be depreciated to a negative value of course.)


	2.		2.

	An estimation method which assumes a straight line relationship between the items under review.		An estimation method which assumes a straight line relationship between the items under review.
	Sometimes known as Linear interpolation.		Sometimes known as Linear interpolation.
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	* [[Reducing balance]]		* [[Reducing balance]]
	* [[Sum of the digits]]		* [[Sum of the digits]]

imported>Administrator: CSV import

2012-10-23T14:20:47Z

CSV import

New page

1.
A basis of allocating total costs or income equally across successive time periods.

For example, a fixed asset has a cost of $12m, an expected disposal value of $2m and an expected useful life of 4 years.
The total expected accounting cost = $12m - $2m = $10m.

Allocated on a straight line basis over 4 years, the depreciation charge in each year would be $10m/4 = $2.5m.

The net book value of the fixed asset would be (at the end of each year):
Year 1 = 12.0 - 2.5 = $9.5m.
Year 2 = 9.5 - 2.5 = $7.0m.
Year 3 = 7.0 - 2.5 = $4.5m.
Year 4 = 4.5 - 2.5 = $2.0m.

Using a straight line basis of depreciation, the net book value of a retained asset will often fall to zero.
(But it would never be depreciated to a negative value of course.)

2.
An estimation method which assumes a straight line relationship between the items under review.
Sometimes known as Linear interpolation.

== See also ==
* [[Depreciation]]
* [[Linear interpolation]]
* [[Reducing balance]]
* [[Sum of the digits]]