单词 | sum of the digits method |
释义 | sum of the digits method sum of the digits method (also sum of the years' digits method) noun [sing.] (abbr SYD)
(Accounting ) a way of reducing the value of (depreciating) an asset in a company's financial records in which the amount taken from the asset's value decreases each year. The value of the asset (its book value) is reduced at a rate that gets smaller each year: The sum of the digits method is used for assets that lose value rapidly in the first years of ownership, for example cars. Using the sum of the year's digits method, an asset with a useful life of three years will lose 50% of its value in the first year, 33.33% in the second year and 16.67% in the third year. ⇨ DOUBLE-DECLINING BALANCE METHOD, REDUCING BALANCE METHOD, STRAIGHT-LINE METHOD |
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