Eres : Digital Library : Works

Paper eres2006_106:
SHORT-CUT APPROACHES TO CALCULATING DEPRECIATION IN THE COST METHOD OF VALUATION

id eres2006_106
authors Akakandelwa, Nalumino
year 2006
title SHORT-CUT APPROACHES TO CALCULATING DEPRECIATION IN THE COST METHOD OF VALUATION
source Book of Abstracts: 13th Annual European Real Estate Society Conference in Weimar, Germany
summary In financial reporting an asset has cost or value if it can be measured reliably. The increasing demand for information disclosure in accounting reporting standards is drawing interest on how valuers and accountants can speak the same language when reporting asset values. Within the framework of financial reporting, International Valuation Standards focus towards compliance with the conventions adopted by the International Accounting Standards. This paper contributes to harmonising depreciation calculation by introducing short-cut formula approaches that may be incorporated into valuation practice and at the same time consistent with the language accountants understand. It presents formulas for calculating allowable annual depreciation (AAD), accumulated depreciation (ACD), and depreciated asset values (DAV) in the accelerated methods. The formulas overcome the use of cash flow tables, simplify both the teaching and practice of the cost method of valuation and can be applied to any depreciable assets.
keywords cost method; depreciation; depreciated replacement cost
series ERES:conference
type normal paper
discussion No discussions. Post discussion ...
ratings
session 6-E
last changed 2008/11/01 09:47
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