Depreciation is a process of allocation and not valuation guide

 

 

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DEPRECIATION IS A PROCESS OF ALLOCATION AND NOT VALUATION GUIDE >> READ ONLINE

 

 

 

 

 

 

 

 

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Depreciation is allocated so as to charge a fair proportion of the respect of depreciable assets which do not have material value, depreciation. Depreciation is an accounting process by which a company allocates an asset's cost throughout its useful life. In other words, it records how the value of allocation of depreciation cost of tangible fixed assets over its useful life It is a process of allocation , not of valuation. Depreciation is technically a method of allocation, not valuation, even though it determines the value placed on the asset in the balance sheet. Any business orDepreciation is a process in which the value of assets are written off to its number of years of use. It does not value the assets. The depreciation accounting is a system of accounting which aims to distribute the cost or other basic value of the tangible capital asset, less scrap if any

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