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Printer-friendly version. Functional decline is a new loss of independence in self-care capabilities and is typically associated with deterioration in mobility and in the performance of activities of daily living (ADLs) such as dressing, toileting, and bathing.
Under the prime cost method, you work out the deduction for the decline in value of a depreciating asset by allocating the cost of the asset uniformly over its effective life. Under this method, the deduction for the decline in value is based on the cost (first and second elements) of the asset.athie acquired a computer costing $2,000 on 1 September. She uses it for work-related purposes only. She worked out the deduction for the decline in value of her computer using the prime cost method and the Commissioner's determination of effective life (four years).