Term:
Sum-of-the-years digits depreciation
Definition:

Sum-of-the-years-digits depreciation is a depreciation profile based on an amount of annual capital consumption that declines linearly over the life of the asset. The amount in any year is calculated as the number of years that the asset is expected to remain in the capital stock divided by the sum-of-the-digits of the service life of the asset when new.

Domain:
Economics & National Accounts
Source:
Measuring Capital: OECD Manual, Annex 1 Glossary of Technical Terms Used in the Manual, OECD, 2001
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