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hi sir,
“various components of each warehouse have not been treated as separate components and depreciated over a specific useful life”
1) which components should be deperiated seperatly?
I think each item has diff useful life so by defualt it will be depreciated seperatley?
“Items such as computer systems are likely to be significant components of the warehouses and as such should be accounted for as discrete assets in their own right”
2) how to know that computer systems are significant component?
Thanks
Read all information in the scenario:
Notes:
1. Several old warehouses were modernised during the year. The modernisation involved the redesign of the layout of each warehouse, the installation of new computer systems, and the replacement of electrical systems.
This note supports the $43m (230-187) increase in PPE. That the Q bothers to specify the new computer systems and electrical systems suggest that these are the significant elements of the modernisation.Thanks for replying sir, sorry my misunderstanding still not clear
“various components of each warehouse have not been treated as separate components and depreciated over a specific useful life”
How did we arrive to this conclusion (not been treated as sep components) within the context ?
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