Depreciation Methods

Annotations:

• The depreciation method is simply the pattern by which the cost is allocated to each of the periods involved in the service life.

1. Carrying Amount

   Annotations:

   • Property, plant, and equipment are carried on the statement of financial position as their carrying amount.  Carrying amount ist he cost of the property, plant, and equipment less the accumulated depreciation.  It represents the portion of the asset's cost that has yet to be expensed - not the asset's market value.