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Non-current assets: Acquisition and depreciation
3.3 Straight-line method
This method charges the same amount each accounting period to the statement
of profit or loss over the expected useful life of the asset.
Buildings are most commonly depreciated using this method because entities
will commonly get the same usage from a building each year.
The amount to be charged to each accounting period is calculated as follows:
Original cost – estimated residual value
Depreciation per annum =
Estimated useful life
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