Topic 5
Calculation of depreciation
Depreciation and accumulated depreciation of fixed assets (tangible assets) mustbe determined except for land.
The formula used in the calculation is as follows:
For example: A machine priced 30,000 baht is expected to have 10 years of useful life and then it can be sold for 2,500 baht. The depreciation can be determined as follows:
Or calculated as a percentage (%) of cost equally each year
From a similar example, depreciation is calculated at the rate of 10%. Therefore,