For each Asset Depreciation Type, you must select a method of depreciation from the drop-down list. Jenzabar provides the following depreciation methods, which cannot be edited or deleted:
Method |
Description |
Explanation |
Example |
DB |
Declining-Balance |
Declining-Balance method is an accelerated depreciation method that uses a constant percentage rate applied to the previous year's value rather than to the original cost. |
|
SL |
Straight-Line |
An equal amount of depreciation expense is assigned to each year (or period) of asset use. Depreciable cost is divided by useful life in years to determine the annual depreciation expense. |