Vessel depreciation accounting - typically 20-30 year useful life, straight-line or units-of-production, over scrap value.
Formula
$$ D_{annual} = (C - S) / L $$Symbol legend
| Symbol | Meaning | Unit | Source |
|---|---|---|---|
| $C$ | Original cost | M USD | newbuild contract |
| $S$ | Residual / scrap value | M USD | LDT × rate |
| $L$ | Useful life | years | accounting estimate |
Sources
- IAS 16 / IFRS 16.