Sum of Years' Digits Depreciation Law and Legal Definition

Sum of years' digits depreciation is a method of depreciation in which cost of an asset is allocated over its useful life. It is a form of accelerated depreciation in which a portion of an asset's depreciable cost is expensed each year.

Sum of years' digits depreciation is computed by multiplying depreciable cost of a tangible capital asset by the number of years of its remaining useful life and then divided by its sum of the year’s digits of the depreciable life (SYD). The formula for calculating SYD is: depreciable life (depreciable life + 1) / 2.