DEPRECIATION, DEPLETION AND AMORTIZATION

Author Topic: DEPRECIATION, DEPLETION AND AMORTIZATION  (Read 218 times)

Offline Repon

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DEPRECIATION, DEPLETION AND AMORTIZATION
« on: April 18, 2017, 11:41:52 PM »
DEPRECIATION, DEPLETION AND AMORTIZATION

DEPRECIATION: The term depreciation is used with reference to tangible fixed assets because the permanent continuing and gradual fall in book value is possible only in the case of fixed asset.

DEPLETION: The term depletion is used for the depreciation of wasting assets (natural resources) such as mines, oil wells, timber trees etc.Though land is a natural resource, but it is not depreciated because land is assumed to have an unlimited useful life.

AMORTIZATION: The term amortization is used in respect of intangible assets like patents, copyrights, leasehold and goodwill which are recorded  at cost. Some intangible assets have limited useful life and are, therefore, written off. The process of their writing off is called amortization.
Senior Lecturer in Accounting
Department of Business Administration
Faculty of Business & Economics
Daffodil International University

Offline hassan

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Re: DEPRECIATION, DEPLETION AND AMORTIZATION
« Reply #1 on: April 20, 2017, 06:46:54 AM »
Good post
Md. Arif Hassan
Assistant Professor
Department of Business Administration
Faculty of Business and Economics
Daffodil International University

Offline Repon

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Re: DEPRECIATION, DEPLETION AND AMORTIZATION
« Reply #2 on: April 20, 2017, 01:11:33 PM »
Thank you sir......Md. Arif Hassan
Senior Lecturer in Accounting
Department of Business Administration
Faculty of Business & Economics
Daffodil International University