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Hello Stephen.
If a company started and completed construction of a processing plant during the year, and i am to calculate accumulated depreciation of this plant. Should I consider this year when calculating the depreciation or not because we’re not given the exact date of completion of this plant. I can’t time apportion in this year because of not knowing the exact date or month of completion.Some Exam advise on this. Thanks
You have to make an estimate of the date when the asset was ready for use.
Then candidates are likely to make different estimates. Does that mean there’s an error in the question? Because we depreciate starting from the time the asset is put to use. What if I assume that it was started and completed during the year then put to use the next year? Am I wrong if I make that assumption because the examiner has not stated the exact date the plant was put to use. Thank you
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