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Advantages of Straight Line Method

Straight Line method has certain advantages which are stated below:
  • It method is very simple, easy to understand and apply.
  • Asset can be depreciated unto the net scrap value or zero value. Thus, this method facilitates to distribute the full depreciable cost over useful life of the asset;
  • Every year, same amount is charged as depreciation in profit and loss account. This makes comparison of profits for different years easy;
  • This method is suitable for those assets whose useful life can be estimated accurately and where the use of the asset is consistent from year to year.
Example: leasehold buildings.

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