Accounting presentation: Question 6:Comment on the depreciation method used by the Group,

on the provisions and on the impairment (if any)?Methods of DepreciationThe four depreciation
methods include straight-line, declining balance, sum-of-the-years' digits, and units of
production.Straight-line depreciation is an accounting process that spreads the cost of a fixed
asset over the period an organization expects to benefit from its use. Depreciation impacts a
company's income statement, balance sheet, profitability and net assets, so it's important for it
to be correct.The declining balance method is an accelerated depreciation system of recording
larger depreciation expenses during the earlier years of an asset's useful life and recording
smaller depreciation expenses during the asset's later years.Sum-of-the-years' digits is an
accelerated method for determining an asset's expected depreciation over time. Depreciation is
an accounting technique that involves pairing the cost of using a tangible asset with the
advantage gained over its useful life.Units of production is a popular depreciation method that
allows businesses to allocate the cost of a fixed asset based upon its use. Common in
manufacturing, the units of production rate is calculated by dividing the equipment's cost by its
expected lifetime productionWhen focusing on the depreciation of Takeaway we realized that
not only one method was used which is pretty common within big firms.Indeed after looking and
comparing the financial statements from 2018-2019 and 2019-2020 we figured that depending
on the assets, a certain depreciation method was used.First we noticed the use of the declining
method. It's a method where in the first years, the depreciation expenses are always greater
than in further years. This can be noticed in the Consolidated statement of profit or loss-
Financial statement of 2018-2019 depreciation and amortization’s expenses are recorded as :
(Pictures )and if we try to put them all out of 20 compared to the revenues we get: 2018-
0.7/2019-1.For question 6, which is : “Comment on the depreciation method used by the Group,
on the provisions and on the impairment (if any)?” We focused on the annual reports of
Takeaway.Most precisely on pages from 212 to 215 since it explains how provisions are
calculated. But also on pages 229 to 230 which explains the method of calculation for
impairment. After doing so, we came to the conclusion that provisions are measured, like it is
stated at: “the best estimate of the expenditure required to settle the obligation at the reporting
date, taking into account the risks and uncertainties surrounding the obligation. Where a
provision is measured using the cash flows estimated to settle the obligation, the carrying
amount is the present value of those cash flows.” And thus their depreciation is (...) as stated in
(...)And for impairments, they are calculated by “Impairment loss = carrying cost – recoverable
amount”. It is also stated that “An impairment loss is recognised whenever the carrying amount
of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit
or loss. Impairment losses recognised with regard to CGUs are allocated first to reduce the
carrying amount of any goodwill allocated to CGUs and then to reduce the carrying amount of
the other assets in the CGU on a pro-rata basis. An impairment loss can be reversed if there
has been a change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortization, if no impairment
loss had been recognised. An impairment loss of goodwill is not subsequently reversed.”After
browsing the documents we came to the conclusion that their depreciation method was the
straight line method, as it is stated in the Property and equipment part “ Depreciation is
recognised to write off the cost of an item of property and equipment, less any residual value,
over its estimated useful life using a straight-line depreciation method (...) It is calculated as a
fixed percentage of cost and is recognised from the date an asset is available for use, p.212.