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Hi John
The Kaplan textbook states that it is the norm not to deduct depreciation in the year of sale of an asset (if i recall correctly). However ACCA practice papers seem not to follow this assumption.
In your opinion, for ACCA F3, is there any such underlying assumption should I go only by what each question explicitly states?
Thank you in advance for your help.
It is certainly very common to have no depreciation the year of sale. However this depends on the policy of the company.
In the exam, depreciation is always calculated on a pro-rata basis (i.e. based on the number of months) unless the equation says that the policy is ‘no depreciation in the year of sale’ (and, similarly, ‘a full years depreciation in the year of purchase’).
I explain all this in my free lectures on depreciation, and I do suggest that you watch them!
Thank you John.
I will try to. I have also already marked a few other topics to watch for revision.
For my next module I intend to use the lectures on here from the start.
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