Friday, August 24, 2012

Depreciation ... real case examples


In my new book, Introduction to Management Accounting, ready for publication within two weeks of so from now, I will provide up to date car price information for three cars:
  • BMW 320d
  • Volvo S80
  • Porsche 911

I mention this because my web site includes a page in which I provide two examples of how to use real car price data to estimate a depreciation function. The reason for doing this is to test whether we are using the appropriate method of providing for depreciation.

There is nothing wrong with the examples on my web site but as I was writing the book I felt I ought to use up to date data ... I might leave the old data there too, I will decide later.

Anyway, watch out for the book and the updated web page; but there is nothing wrong with the web page as it is as the methods I use there are still appropriate.


Duncan Williamson

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