Depreciation

This topic has 3 replies, 3 voices, and was last updated 9 years ago by P2-D2.

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September 21, 2016 at 7:53 pm #341271
nari
Member
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Hello
When construction of an asset has been completed, does depreciation start at that point or when it has been put into use?
September 21, 2016 at 10:34 pm #341279
P2-D2
Keymaster
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Depreciation begins when the asset is available for use, not when it is physically being used.
Thanks
September 24, 2016 at 5:37 am #341531
Binh
Member
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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?
September 26, 2016 at 9:43 pm #341817
P2-D2
Keymaster
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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.
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