What's the difference between reducing balance method & straight Line depreciation method?

Question added by Muhammad Umair Arain , General Accountant , Heart Beat Medical Center & One Day Surgery LLC
Date Posted: 2015/03/20

Upvote (0) Views (14) Followers (2) Answers (1) Report Question

by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Reducing balance method - Calculate depreciation on Net Book Value (NBV)

Straight Line method - Calculate depreciation on Cost (Original Cost)

What is most famous depreciation method in Middle East Countries?
Top Answer: It's depends on the polices of the company however most commonly used is Straight line depreciation metho ... See More

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Which is more preferable depreciation method Straight Line Dep. or Reducing Balance Method?
Top Answer: <p>It's depend on nature of Industry in which you are, reducing balance method is being preferred w ... See More

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How to calculate depreciation for all method (Like..,= Straight line method Declining balance method... etc)?
Top Answer: My brother Thank you for the invitation Explanation needed more time which is not available Please ask qu ... See More

Answers (3)
What is the difference between method straight-line depreciation and double declining balance depreciation?
Top Answer: 1. STRAIGHT-LINE DEPRECIATION It is calculated by subtracting an asset’s expected salvage value ... See More

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