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As I explain in my free lectures, there is no rule. It is the company’s choice as to how many years to use (if they are using straight line depreciation). Obviously with reducing balance depreciation they do not need to determine a number of years.
In exam questions you will be told how many years if it is straight line depreciation.
Which method they use, and (if straight-line depreciation) how many years to use must be stated in the noted to the accounts.
As I explain in my free lectures, there is no rule. It is the company’s choice as to how many years to use (if they are using straight line depreciation). Obviously with reducing balance depreciation they do not need to determine a number of years.
In exam questions you will be told how many years if it is straight line depreciation.
Which method they use, and (if straight-line depreciation) how many years to use must be stated in the noted to the accounts.
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