How to Find Accumulated Depreciation
Depreciation is the way accountants track the value of assets over time. As the asset is used to create value a certain portion is written off of the balance sheet and expensed on the income statement. Due to accounting methodology, every transaction must have a balancing transaction. The balancing account for depreciation is referred to as accumulated depreciation, and it may also be found on the balance sheet. If not, there is one other place to look.
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Instructions
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Download or request a copy of the Annual Report. You can usually download a copy from the company's website, or request one by contacting the Investor Relations department.
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Turn to the balance sheet. Accumulated depreciation is considered a balancing asset account. If the company has included accumulated deprecation on the financial statements, it will be located on the balance sheet under assets.
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Turn to the notes to the financial statements. These notes are usually located at the end of the Annual Report. Look for the notes discussing depreciation or assets. They may also discuss accumulated depreciation in Property, Plant and Equipment, or Depreciation Expense, which will be in the notes to the Income Statement.
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Calculate accumulated depreciation. To determine depreciation yourself, you need to know the cost of the asset and its useful life. For instance, if the cost of the asset is $100 and the useful life is 5 years, then the depreciation expense is $20. This is also the accumulated depreciation entry. Each year, as the cost of the asset is written off, the accumulated depreciation account increases. In year 5 depreciation expense is $20. Accumulated depreciation is $100 as the full cost of the asset is written off.
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