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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Depreciation
Hello
When construction of an asset has been completed, does depreciation start at that point or when it has been put into use?
Depreciation begins when the asset is available for use, not when it is physically being used.
Thanks
Dear Mr Tutor,
In case of purchase new tangible asset (says, a car) in January, the company still holds it in store and does not intend to use it in next several months (until July, for example). So it is available to use at Jan, we will depreciate it from January?
If it is ready for use then it is depreciated, feel free to use it in July and leave it in the garage for several months unused but it would be better to delay the purchase until it is actually needed.