straight line depreciation
calculate depreciation by multiplying the cost of the asset by the scrap value at a set rate (Accounting)
Straight-line depreciation
In
accounting or
taxation, straight-line depreciation of an
asset is a
depreciation method where equal amounts of depreciation expense will be taken in each year of the asset's useful life. Although it may not provide the most realistic assessment of the asset's value over time, this method has the advantage of simplicity.
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Straight line depreciation
An equal dollar amount of
depreciation in each accounting period.
straight line depreciation/amortisation
Depreciation/amortisation over a given period is determined by dividing the cost of the asset, less its estimated residual value, by the estimated useful life of the asset pro rata temporis.
Copyright © 2006,
European Central Bank, Frankfurt am Main, Germany. This information may be obtained free of charge through the
ECB's website.
Straight Line Depreciation
a method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year.
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