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6 A AFME Depreciation

What is depreciation in accounting terms?
Depreciation is the systematic allocation of the cost of a tangible fixed asset over its useful life, reflecting the reduction in value due to wear, tear, and obsolescence.
What is the formula for calculating depreciation under the Straight Line Method?
(Cost minus Residual Value) divided by Useful Life
Why do banks charge depreciation on fixed assets?
Banks charge depreciation to match the cost of an asset against the revenue it helps generate, following the matching principle, and to show a true and fair view of the asset's carrying value.
Which Indian Accounting Standard specifically deals with property, plant and equipment depreciation?
Ind AS 16 governs PPE and related depreciation
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