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Double Declining Balance Depreciation Method
The double declining balance depreciation method is an accelerated depreciation method that increases the amount of charges taken during the first few years. The double declining balance depreciation method can be helpful when comparing and analyzing...(Continue Reading)
Comparing Depreciation Methods
Depending on which depreciation method is used, the depreciation charges incurred on the income statement can vary greatly. Comparing depreciation methods can make analyzing companies in asset intensive industries much easier....(Continue Reading)
Sum of the Years Digits and Other Accelerated Depreciation Methods
The sum of the years digits depreciation method is an accelerated depreciation method that assumes an asset loses a greater percentage of its value in the earlier years of its useful life. Sum of the years depreciation charges are calculated by addin...(Continue Reading)
Accumulated Depreciation
Accumulated depreciation is the write-down of an asset's carrying amount on the balance sheet due to loss of value from usage and age. Accumulated depreciation can best be understood by using a new car as an example....(Continue Reading)
Formulas, Calculations and Ratios for the Income Statement
These financial formulas, calculations and ratios can be used when analyzing an income statement....(Continue Reading)
Goodwill and Amortization Charges on the Income Statement
Goodwill and other intangible assets must be amortized on the income statement. If the goodwill becomes impaired, management will announce a write-down and reduce the carrying value on the balance sheet....(Continue Reading)
Minority Interests on the Income Statement, the Cost Method, Equity Method, and Consolidated Method
Depending upon the amount of voting stock owned, minority interests on the income statement will be recorded using the cost method, the equity method, or the consolidated method....(Continue Reading)
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Declining Balance Method
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