sum-of-years’-digits method
(SYD)
Noun
An accelerated depreciation/amortization method that takes the years of expected life of the asset, adds the digits of all the years, and then divides each year by this sum to determine the percentage by which the cost of the asset is expensed in that year, starting with the highest percentage in year 1.
Synonym(s):
- SYD method; sum of years’ digits method.