Doctor Accounting : Chapter 10 in Collaboration with SAA Global Education

Do you know what Depreciation is?

Watch Dr Accounting chapter 10 to learn more about the world of Accounting with us!

Study Finance & Accounting in Singapore : https://saage.edu.sg/
Study Finance & Accounting in Malaysia : https://malverninternational.edu.my/
Study ACCA in London : https://malvernhouse.com/acca-london/

Video Transcript

Welcome to Doctor Accounting chapter ten.
In this series, I would like to share with you what is Depreciation.
A depreciation is a systematic allocation of expenses over useful life.
Depreciation is part of the FRS scheme. Depreciation is a non-cash item and it is an expenses that will appear on the debit side of the profit-loss account if you look in the T-form.
So depreciation there is a formula. The formula, let me demonstrate to you.
It is Cost minus by Residual Value over the Useful life.
So what is a Residual value? A Residual value is a scrap value.
Useful life is the Economic life of an asset.
So now, Depreciation there is two methods. One is the Straight-line method. Another one is the Reducing balance method.
I will share with you in my future series, about what is a Straight-line method and what is Reducing balance method.
So stay tuned! Thank you.