标题: FSA: asset write down [打印本页] 作者: Walex 时间: 2011-7-11 19:17 标题: FSA: asset write down
usually refer to asset residuel value decrease? otherwise how it lead to overestimate of expense in prior years (depreciation) thanks作者: kkn006 时间: 2011-7-11 19:17
i havent understood ur question clearly.
are you asking why depreciation expense is overestimated if salvage value is reduced? if this is the question. the answer is simple, right?
using straight line depreciation:
depreciation expense = (cost - salvage value/useful life)
from the equation if salvage value is lower obviously ur depreciation expense overestimated in first few years till u hit the salvage value then u'll have no depreciation expense at all.
