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The former affects the balance sheet of a business or entity, and the latter affects the net income that they report. For example, a depreciation expense of per year for five years may be recognized for an asset costing Methods of computing depreciation, and the periods over which assets are depreciated, may vary between asset types within the same business and may vary for tax purposes. One such cost is the cost of assets used but not immediately consumed in the activity. The business then records depreciation expense in its financial reporting as the current period's allocation of such costs. Depreciation expense generally begins when the asset is placed in service. Depreciation is any method of allocating such net cost to those periods in which the organization is expected to benefit from use of the asset.

Four weddings and a funeral watch online megavideo

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