The factors that led to the holding of depreciation

The factors that led to the holding of depreciation
According to Zaki Baridwan factors that cause shrinkage can be grouped into two namely: (Zaki Baridwan, Intermediate acounting, Issue 8, BPFE Yogyakarta, 2004, p 306)

    Physical factors
    Factors functional

The things that cause limited useful life of fixed assets, among others, due to physical factors that reduce or not even used anymore, because of:

    Aus as it is used - therefore the use of fixed assets in the production process not just once, but continues in kontiyu resulted in capacity and productivity of the assets owned by it will decrease its value so that the quality and quantity produced in the production process the less results.
    Wear due to age - Each asset can wear out over time. Although the fixed assets has not been used, but with the chemical factors caused by natural effects such as rain, heat and air against the assets will cause damage and may not be efficient to be used again.
    Damage - Damage of an asset can be caused by careless or improper in the way pengguanaan fixed assets, are also caused by disasters such as earthquakes, floods or fires that can not be fully reused or fixed assets can not be used at all.


As for other factors, in addition to physical factors that lead to the need of holding the depreciation is functional factors that also may reduce or result in a fixed asset can not be used anymore, namely:

    Ineligibility - By increasing the purchasing power of consumers who exceed the available production equipment capacity will result in production tools available are technically still be used, but the economic slowdown has shown, because it no longer meets the requirements to support the economies of scale. Therefore, to meet consumer demand need for replacement of new production equipment which has a production capacity greater than the old tools.
    Obsolescence - technical progress and the continuous renewal consequences for the means of production are economically considered old fashioned. Repair and technical renewal come continuously quickly can lead to economical power tools long production will decrease or economically can not be used anymore and need to be replaced with new equipment.
    Termination request - A means of production will not have any value because their products can not be maintained longer on the market. This is because changes in consumer tastes or needs of an increasingly diverse. Goods production is considered old-fashioned by the consumer, so it is not reliable anymore for merebutkan market share.