Calculating Depreciation on equipment

[mattydinx]

Alright guys,

Currently re-working my costings in an attempt to make the business more profitable.

At the moment I merely take the replacement cost value of my equipment, find 10% of it's total value and divide that figure by the number of gigs I estimate I'll have over the year, last year I exceeded this number technically resulting in extra money in the pot.

I've seen different methods for doing this, accounting for an items estimated lifespan and depreciation cost year-on-year.

Perhaps I'm thinking too much into this, just wondered how you guys account for depreciation.

[NKR]

I follow the approved level of depreciation that the Inland Revenue allow you to have in your accounts as a capital allowance.

[Dynamic Entertainment]

I pay my accountant so i dont have to think about it