The concept of Accounting for Depreciation on a component wise valuation basis is a fairly niche concept. There have been significant amendments in the Companies Act pertaining to calculation of depreciation, in the last 3 decades. This has impacted the results of the companies, as the financials...
(slm) of depreciation reduces the value of an asset consistently till it reaches its scrap value. a fixed amount of depreciation gets deducted from the value of the asset on an annual basis. you can get the depreciation amount using the below formula: (original cost – estimated scrap value...