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August 3, 2021 at 10:05 am
I learned that there was another method of depreciation called the Sum of Digits method. Will it be tested in this paper?
December 28, 2020 at 6:20 pm
what is the difference between depreciation and accumulated depreciation?
January 16, 2021 at 3:36 pm
As per my understanding, depreciation is expenses which is goes to SPL and Accumulated depreciation goes to Liability.
August 4, 2022 at 9:39 pm
correct, Depn is expense in a year so it goes to P&L(only current year dep’n), whereas to show how much asset was Depreciated so far this can be seen on the Balance Sheet ie SFP ( lets say 5 years worth)
June 9, 2020 at 6:29 pm
If an additional component useful life is more than the main asset can be use that additional component useful life for calculating depression,or use asset ul
June 9, 2020 at 6:27 pm
May 26, 2020 at 7:45 pm
I have gone through bpp and Kaplan study text to get understand the logic behind excess depreciation, but unfortunately I could not find reason behind we deducting excess depreciation from revaluation surplus and added back to retained earning, bpp and Kaplan only providing the treatment that’s where shobd be added and deducted.
Please give the reason behind do such calculation
July 3, 2020 at 3:57 pm
Revaluation upward would give a higher depreciation which would reduce the profit for the period which in turn will reduce the dividend given to shareholders.
So in order to be fair to the shareholders we make the transfer from revaluation surplus to retained earning.
April 15, 2020 at 6:59 am
March 12, 2020 at 11:08 am
I have a question please..
The estimated useful life was changed to 5 years on 31 Dec 2014. So the useful life on 1 Jan 2014 was 6 years. Why don’t we calculate the depreciation for 2014 based on CV 20,000/6y=3,333. As we are still in the Financial Year 2014 and we did not submitt the FSs?
April 21, 2019 at 11:14 pm
Please i need help. The third bullet point ‘Separate the cost into its component parts and depreciate separately if a complex asset’, this was not discussed in the depreciation video.
I cant find a video that talks about it.
April 22, 2019 at 8:02 am
Where you are considering depreciation on, for example, a ship, the various separate elements within the overall asset will likely have very different life expectancies
The hull – 50 years?
The engines – 10,000 hours?
Paintwork – 3 years?
Hard furnishings – 5 years?
Soft furnishings – 2 years?
Clearly it would be inappropriate to depreciate soft furnishings straight line at 2% over 50 years and equally it would be inappropriate to depreciation the hull of the ship over just 2 years
So we need to separate out the component elements that have different life expectancies and depreciate those separate elements according to their estimated useful lives
April 22, 2019 at 10:27 am
Yes. Thank you
April 7, 2019 at 12:55 pm
I am very happy so far how the course is going, thanks to you. You make the course fun and easy to understand. The layout of calculating depreciation its very easy, hope will be also easy for me when i start doing questions in revision kit.
January 12, 2019 at 9:41 pm
I watched the video and I would have a questionregarding to it.
If the estimated useful life at 31.12.2014 is of 5 years why do we still charge 2,5M of depreciation and not 4M?
At 31.12.2014 I would apply (carrying value 20M : 5 years = 4M depreciation).
Thank you in advnace.
March 12, 2020 at 11:06 am
November 21, 2018 at 6:27 am
Hi how do I know which depreciation method to use if same hasn’t been specified. Been attempting some examples from different sources and same varies.
November 21, 2018 at 8:25 pm
You will either be told in the question or you have to use the information given to help you decide. So if you are told the useful life then it will be straight line depreciation for example.
October 6, 2018 at 2:51 pm
Really appreciate the way of clearing the topics.
October 7, 2018 at 8:50 am
Glad we’ve been able to help you, and hope you enjoy the rest of the course.
August 29, 2018 at 12:43 pm
When depreciating an asset meant for disposal, How is the expression ” no depreciation on the year of disposal treated in the account” to arrive at profit or loss on disposal?
August 29, 2018 at 8:28 pm
Following on from your previous question, if we charge no depreciation in the year of disposal then the carrying value used in the calculation of the profit or loss on disposal is based upon the carrying value at the start of the reporting period.
August 29, 2018 at 10:04 am
I am have a challenge understanding the meaning of full depreciation of an asset in the year of acquisition and none the year of disposal.
August 29, 2018 at 8:27 pm
It is quite literal in that if you have a December year-end and acquire the asset in say June then you charge a full twelve months depreciation on it (“full depreciation of an asset in the year of acquisition”).
If we then dispose of it in a future year and the disposal date is say November then we don’t charge any depreciation at all for that year, even though we’ve used it for 11 months of the year (“none in the year of disposal”).
August 9, 2018 at 3:58 am
I’ve been struggling with this paper. Would you recommend doing it with your notes and lectures only? or do i need to read through the chapters of a text? the volume of information is alot. I really want to write exam in Decemeber.
August 29, 2018 at 8:25 pm
You can use the notes and lectures but you will need a practice and revision kit too so that you can work through all the different exam style questions.
The good thing is that you have plenty of time to be able work through all the materials in advance of December’s exam and ask any questions if you get stuck. If you are stuck and want a quicker reply then can you please post your questions on the ask the tutor forum on the website.
July 30, 2018 at 2:44 pm
Your step by step workings are very clear & helpful. Was getting all muddled-up in my depreciation workings, thanks to you – got it now
July 30, 2018 at 8:32 pm
Great to hear that the lectures and methods used are working for you. We’re here to help if you get stuck on anything.
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