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Straight-line depreciation is calculated based on the useful life and the acquisition costs. The loss in value occurs in constant depreciation amounts spread over the years. With declining-balance depreciation, the declining-balance depreciation rate is used to determine the reduction in value. Due to the percentage calculation of the depreciation, the depreciation amount with declining-balance depreciation is significantly higher at the beginning of the useful life than with straight-line depreciation. This ultimately has an effect on the P&L account, since the profit is reduced more with declining-balance depreciation than with straight-line depreciation, so the tax savings for the company are greater. ____________________________ I really hope that this video has helped you to understand the topic better 🙂 Since I am certainly not infallible, I am always grateful for praise and criticism so that I can do it either just as well or even better next time 😉 If you have any topic requests because you have a test or an exam coming up or you just want to know more about a certain topic, then feel free to write to me in the comments under the videos or directly by message on Instagram: @herrtafelschwamm / herrtafelschwamm You will find a few playlists attached that could also help you. I will gradually expand the playlists, as I still have countless videos in my head that I would like to implement 😉 Videos on external accounting / posting records and posting on T-accounts: • Basics of external accounting... Exercises on external accounting as preparation for class tests: • Exercises on external accounting... Videos on cost and performance accounting (KLR): • Cost and performance accounting - From the... Videos on business administration: procurement and warehousing: • Business administration: procurement and warehousing - V... Videos on business administration: financing and investment • Business administration: investment and financing - A...