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Depreciation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Depreciation

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
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  • August 25, 2018 at 11:39 am #469374
    zkaay
    Participant
    • Topics: 212
    • Replies: 98
    • ☆☆☆

    Hi sir,

    Comp should start to amortize /dep when the assets is ready to use

    or when its actually used ?

    Clarify the matter w giving example sir plz

    Thanks

    August 26, 2018 at 8:32 am #469490
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7198
    • ☆☆☆☆☆

    Hi,

    Depreciation starts from when it is ready to be used. So if it is ready on 1 October but not used until 1 November, the depreciation will start on the earlier date of 1 October.

    Thanks

    August 26, 2018 at 11:21 am #469507
    Billy
    Member
    • Topics: 20
    • Replies: 118
    • ☆☆

    Does tangible and intangible assets have different concept when come to depreciation? I mean based on above Tangible is depreciated when IT IS READY FOR USE NOT WHEN IT IS USED. For intangible assets, if say it has 10 years useful life, but cannot be used until 1 year later, it should be depreciated from next year over 9 years period?

    August 29, 2018 at 9:34 pm #470068
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7198
    • ☆☆☆☆☆

    Hi,

    It is the same for intangibles as it is for tangibles, the amortisation starts when it is available for use.

    Thanks

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