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how many types of deprecation (exactly)
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Answer Posted / zubair_glad24@yahoo.com
Hi Friends
Exactly there is nine types of Depreciation they are
1. Diminishing balance method
2. Straight line method
3. Annuity method
4. sinking fund method
5. Insurance policy method
6. Double dicling method
7. Revalution method
8. Depletion method and
9. Machine hour rate method
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M/s ABC Brothers, which was registered in the year 2000, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The auditor raised objection to this change in the method of depreciation. The objection of the auditor is justified because (a) Change in the method of depreciation should be done only with the consent of the auditor (b) Depreciation method can be changed only from WDV to SLM and not vice versa (c) Change in the method of deprecation should be done only if it is required by some statute and change would result in appropriate presentation of financial 6 statement (d) Method of depreciation cannot be changed under any circumstances
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