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cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › cost

  • This topic has 1 reply, 2 voices, and was last updated 4 weeks ago by P2-D2.
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  • December 13, 2022 at 3:23 pm #674444
    xyzc
    Participant
    • Topics: 342
    • Replies: 91
    • ☆☆☆

    In example 8, the investment property example, the depreciation has been calculated using the carrying value. Is not the depreciation calculated using historical cost. Also it has been calculated using the remaining useful life not the full useful life

    December 30, 2022 at 9:45 am #675227
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6440
    • ☆☆☆☆☆

    If the asset has been depreciated correctly, which is has, then we can depreciate the carrying value over its remaining useful life.

    So if we had an asset that had cost 100 and had a 10 year life if after one year we were given the CV of 90 and remaining useful life on 9 years we would still be depreciating the asset correctly.

    Thanks.

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