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Answer Posted / 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.
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