Accounting Depreciation Functions

This chapter covers the Straight Line Depreciation (SLD) and the Sum of the Years Digits (SYD) functions. The first function is a simple depreciation method and the second one is an accelerated one. Sum of the Years Digits is different. This is an accelerated depreciation function. The depreciation rate is different from year to year. It is interesting to note that different assets have different “economic lives” or guidelines for depreciable life. Land, for example, is not depreciable. Buildings have different life spans of 20–60 years. Certain machinery could be depreciated in five years and computers in four years. The chapter shows the pictorial presentation of the Straight Line Depreciation (SLD) and the Sum of the Years Digits (SYD) functions.