- This topic has 1 reply, 2 voices, and was last updated 11 months ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › ACCA Forums › ACCA AA Audit and Assurance Forums › Depreciation
Hod do i calculate depreciation using a sum of digits method
Welcome to the OT forums!
It is not examinable in AA (because it is not examinable in FA) but here’s an example if you are interested:
Asset useful life is 4 years, the sum of the digits is 1+ 2 + 3 + 4 = 10. Depreciation in year 1 is 40%, 30% in year 2, 20% in year 3 and 10% in the last year. It’s like a reducing balance method, though reducing balance just gets smaller and smaller; is not nil after a specified number of years.
For a tutor response to your queries – please use my tutor forum https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-audit-and-assurance-aa-exams