The following are the factors which should be taken into account in arriving at the depreciation charged on a non-current asset:

i. The cost (or revalued amount) of the non-current asset.
ii. The estimated residual value of the non-current asset.
iii. The estimated useful economic life of the non-current asset.
iv. The method of depreciation considered appropriate for the business by management (i.e., straight-line, reducing balance, sum of the years’ digits, etc.).
v. The nature of the non-current asset.
vi. The legal norms relating to such a non-current asset, where applicable.
vii. The chance of the asset becoming obsolete.