of computing depreciation
in which the depreciable cost
of a tangible capital asset
is first multiplied by the number of years of its remaining useful life
and then divided by its SYD which is computed in two ways: (1) By adding the digits of the years remaining in its estimated useful life
. For example, if the years remaining are 3, the SYD is 3+2+1 = 6, or, if the years remaining are 5, the SYD is 5+4+3+2+1 = 15. (2) By using the shorthand formula
N (N+1) ÷ 2, where N is the number of remaining years. Suitable where the usage
of the asset
declines with the asset's age, it is one of the two methods under accelerated depreciation technique
which only changes
the timing of depreciation while the total depreciation amount
remains the same.
For the second method see double declining balance depreciation.