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What is planned and unplanned depreciation?

Answers were Sorted based on User's Feedback



What is planned and unplanned depreciation?..

Answer / susheel siddamshetty

The depreciation can either be planned or unplanned.

Planned depreciation is one which brings down the value of
the asset after every planned period; say every month,
until the asset value is fully depreciated over its life
period. With this method, you will know what the value of
the asset at any point of time in its active life.

On the contrary, unplanned depreciation is a sudden
happening of an event or occurrence not foreseen (there
could be a sudden break out of a fire damaging an asset,
which forces you to depreciate fully as it is no longer
useful economically) resulting in a permanent reduction of
the value of the asset.

Is This Answer Correct ?    38 Yes 4 No

What is planned and unplanned depreciation?..

Answer / venkat rao

It is the deduction in the value of Asset due to the
Occurance and events loss effect is permmanent on the Asset.


For Ex.Net Book Value of P&M on 1-4-2011 Rs.100000

(-)Fire Accident Occurs on 15-7-2011 Rs.70000
------------
Unplanned Dep. 30000

Is This Answer Correct ?    20 Yes 2 No

What is planned and unplanned depreciation?..

Answer / gautam dubey

Planned Depreciation is the depreciation on normal course
calculated on the basis of depreciation key and useful life
given at the time of creating a new asset, if we want to
charge some manual depreciation due to some adverse
circumstances or change in our estimate which will result an
extra depreciation on the asset then this extra depreciation
can be charged to the asset through Unplanned Depreciation.

Is This Answer Correct ?    11 Yes 1 No

What is planned and unplanned depreciation?..

Answer / gangodi suneel kumar

Planned depreciation:
Posting the depreciation for normal or current posting
periods in regular cource of depreciaion posting is called
planned depreciation.

Unplanned depreciation:
If we post depreciation for past or feature periods that is
called unplanned depreciation
Using the unplanned deprecion option we can post the
depreciation for any posting periods in current fiscal year
which is opened in Asset accounting AJAB/AJRW and OB52.

Is This Answer Correct ?    4 Yes 3 No

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