Sum of Years Digits

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Sum of Years Digits

Also called SYD. A depreciation method. The SYD method writes off more of an asset's value each year than the straight line method, but less than the declining balance method. Under the SYD method, more value is written off at first, such that very little value above the salvage value is available to be written off at the end of the asset's useful life.
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Excel also supports the sum-of-years-digits method.
One of the accelerated methods is called the sum-of-years-digits method.
Table 6-6 compares the depreciation expense under the straight-line, sum-of-years-digits, and declining balance methods for the Farmers' truck.
This allocation for partial periods can also be performed for the sum-of-years-digits and declining-balance methods.
If the Farmers decided to use the sum-of-years-digits method for the truck purchased on October 1, 20X1, depreciation for the first 12 months is $4,000.
As in the case for the sum-of-years-digits method, the first 12-month amount of $6,000 is allocated to the last three months of 20X1 and the first nine months of 20X2.