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Depreciation method

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

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • February 12, 2018 at 12:22 pm #436549
    tarek
    Participant
    • Topics: 45
    • Replies: 57
    • ☆☆

    Dear Mike

    Can one company use different depreciation methods for ppe I mean straight for buildings and WDV for vehicles?
    I didn’t find in ifrs . Kindly give me reference to find answer
    Thanks

    February 12, 2018 at 2:17 pm #436580
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    Yes – it becomes probably becomes clearer when you consider that buildings are often depreciated on a 50 year straight line basis whereas cars could be 25% straight line for example or 30% reducing balance – cars could even be depreciated on a machine hour basis

    What you most certainly would NOT expect for car depreciation is 50 year straight line!

    OK?

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  • The topic ‘Depreciation method’ is closed to new replies.

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