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Dear Sir
I hope this message finds you well.
I wanted to ask whether you think Depreciation may be a part of any consolidation questions and how to deal with themPresumably we depreciate the NCAs according to their own respective depreciation methods and percentages etc and then add the subsidiary’s NCA carrying value to the Parent’s NA carrying value?
Furthermore would the depreciation expense also be consolidated in the Consolidated Statement of Profit and Loss or would they appear under a different heading?
thanks for your help
regardsDepreciation is calculated in the normal way for each company separately.
When preparing the consolidated statements, the depreciation expenses are added together to arrive at the total expense in the SOPL.
In the SOFP, the NCA carrying values are added together in the normal way.
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