So, could you just go over depreciation again?

Sure. I've prepared a quick list of the different types like you asked.

Great.

OK, let's see. Well, you know that normal accounting treatment means that a fixed asset has to be written off over its useful life.

Basically we look at the cost of the item, and take away its estimated scrap value. Then we use a depreciation method to write it off.

Yes, of course. It's five years for computers, I think.

Right. Well, as you say, there are different ways of doing this. Er, let's see, straight line, declining balance, sum-of-the-years'-digits, unit of production, hours of use.

If you look at this list, you can see a description of each of these methods.

Oh yes, I see. Yes, that's very useful.