sum of the years digits (SYD) depreciation
Definition
Method 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.
email to a friend
print this definition
cite this definition
link to this page
sum of the years digits (SYD) depreciation is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
sum of the years digits (SYD) depreciation appears in the definitions of the following terms: accelerated depreciation and double declining-balance depreciation
This content can be found on the following page:
http://www.businessdictionary.com/definition/sum-of-the-years-digits-SYD-depreciation.html