Definition of straight line depreciation

A simple method of calculating the depreciation of a fixed asset. First, estimate a salvage value (the amount that could be earned from the sale of the asset at the end of its useful life), and subtract this from the total cost of the asset. Then divide the remaining amount by the number of years of its useful life. The amount to be written off is the same for each year.

FT Articles & Analysis

No articles are associated with this term