1 thought on “What is the meaning of resetting cost method? What kind of old depreciation includes in the old depreciation”
Donald
The reset cost method refers to a method of minusing a value index that should be calculated from the current cost of estimated updates or resetting assets under the premise of continuing assets.
The reset cost method is to choose a price index, such as CPI, conversion of value when the annual value of asset purchase is converted into the current value, or a better way is to adjust each asset to reflect each The current current resetting costs of the assets, this reflects the two factors: inflation and outdated depreciation. The biggest deficiency of resetting costs is that it ignores the organization's capital. Based on the reset cost assessment, no matter how perfect the reset cost of various assets is, it will also ignore such an additional coordinated value.
Various old depreciations generally include: physical depreciation, functional depreciation and economic depreciation.
The reset cost method refers to a method of minusing a value index that should be calculated from the current cost of estimated updates or resetting assets under the premise of continuing assets.
The reset cost method is to choose a price index, such as CPI, conversion of value when the annual value of asset purchase is converted into the current value, or a better way is to adjust each asset to reflect each The current current resetting costs of the assets, this reflects the two factors: inflation and outdated depreciation. The biggest deficiency of resetting costs is that it ignores the organization's capital. Based on the reset cost assessment, no matter how perfect the reset cost of various assets is, it will also ignore such an additional coordinated value.
Various old depreciations generally include: physical depreciation, functional depreciation and economic depreciation.