Term
Method; Sum of the years digits 

Definition
add to get the denominator, it stays the same but the numerator changes. include salvage value when getting depreciate cost 


Term
Declining balance method of depreciation 

Definition
Do not use salvage value for computing depreciate cost but depreciate ONLY to the salvage value 


Term
Composite depreciation rate 

Definition
calculate depreciation per year (straight line) individually, then add them up and divide by the total original cost 


Term

Definition
Total depreciation base/ total depreciation per year 


Term

Definition
calculate the BOOK VALUE to the date of the revision and recalculate the entire rate. Remember to use the BOOK VALUE to recalculate 


Term
definite lived assets impairment test 

Definition
1) recoverability test future cash flows less than the CARRYING VALUE? 2)Impairment loss excess of carrying amount over FAIR VALUE (if need be minus disposal) 


Term

Definition
Loss on impairment Depreciation (on the asset) 


Term

Definition
Inventory
Asset (to be depleted) 


Term

Definition
Net Sales÷Average total assets 


Term
Return on assets calculation 

Definition
[Profit margain on sales (Net income/ Net sales)]*
[Asset turnover (net sales/Average total assets)]


