Depreciation: A Vehicle Retirement Model a Case Study of A.P.S.R.T.C.

In the industrial economic analysis very few studies are available, dealing as to when a capital asset has to be retired and how a depreciation policy is to be formulated. The retirement of a capital asset depends upon several factors. However, two important factors may be emphasised which to a great extent determine the retirement of a capital asset and depreciation allocations. They are: 1. The Technical life of the asset 2. The Economic life of the asset.