The written down value method (which is also abbreviated as WDV) is generally used to depreciate fixed assets. The written down value method is defined as the net value of an asset, that is the original cost or book value of the asset minus the depreciation and amortisation. It is also called net book value method.
The term fixed assets are also known as property, plant and equipment. These are abbreviated as PP and E. It is a term which is used in accountancy to refer to those assets and property which cannot easily be converted into cash. The term fixed assets is generally used to refer to those assets which are tangible. Fixed assets include land, buildings, motor vehicles, furniture, office equipment, computers, fixtures and fittings and plant and machinery. The value of a fixed asset reduces over a period of time. In other words, a provision for depreciation must be made on the book value of every fixed asset.
The term fixed assets are also known as property, plant and equipment. These are abbreviated as PP and E. It is a term which is used in accountancy to refer to those assets and property which cannot easily be converted into cash. The term fixed assets is generally used to refer to those assets which are tangible. Fixed assets include land, buildings, motor vehicles, furniture, office equipment, computers, fixtures and fittings and plant and machinery. The value of a fixed asset reduces over a period of time. In other words, a provision for depreciation must be made on the book value of every fixed asset.
