Sum Of The Years Digits (Syd) Depreciation

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.

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