Question

How the assets are classified in computerised Asset Accounting? What are the different methods of calculating depreciation on such assets?

Answer 1

In computerised Asset Accounting, Assets are classified into the following categories. 

1. Goodwill 

2. Land (Normally, depreciation is not provided on freehold land) 

3. Building 

4. Plant and Machinery 

5. Furniture and Fixtures 

6. Vehicles 

7. Work in progress (Capital) 

8. Others

The different methods of calculating depreciation are:

• Straight Line Method (SLM) 
• Written Down Value Method (WDV)