• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Depreciation computation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Depreciation computation

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 21, 2021 at 1:51 pm #618385
    msk29
    Member
    • Topics: 82
    • Replies: 65
    • ☆☆

    Hello Sir,

    I have a query with regard to computation of depreciation.

    A company XYZ uses straight line method on the rate of 25% for machinery and tools – which means it has a 4 year useful life.

    If it purchased at 3rd July 2016 and the year end is 31st March 2020. what would the depreciation charge be as at 31st March 2020?

    Based on my computations, 2020 would be the last year of charging depreciation right?

    So what would be the number of days used for computing depreciation?

    Would it be: i) from 1st April 2019 to 3rd July 2019 or
    ii) from 3rd July 2019 to 31st March 2020 or
    iii) 365 days as the last year of depreciation charge?

    Kindly assist.

    Thanks.

    April 21, 2021 at 9:18 pm #618455
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    Hi,

    It would depend on the policy used by the company, and most businesses would use a monthly policy as opposed to daily to keep it all as simple as possible.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • sokleng on FM Chapter 7 Questions – Investment appraisal – methods
  • Annabelayinloya on IFRS 16 Identifying a lease – ACCA (SBR) lectures
  • Ojoggo on The Statement of Financial Position and Income Statement (part a) – ACCA Financial Accounting (FA) lectures
  • hhys on PM Chapter 4 Questions Environmental Management Accounting
  • singhjyoti on Conceptual Framework – ACCA SBR lecture

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in