16 November 2014
Modified Accelerated Cost Recovery System is a recent method of calculating depreciation that is being used in some countries.
In certain countries this method can be adopted for Income Tax purposes as well. This method allows to charge more depreciation in initial years which keeps declining as time passes like WDV method.
This has 2 sub methods General Depreciation System & Alternate Depreciation System.
Year1 Depn. = (Cost X Depn. Method X A) / Useful Life. A can be 100% or more (Say 150% or 200% etc.)
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