- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi Mike!
Could you please explain how writing off the cost of NCA over it’s useful life would constitute of an accounting policy?
Thanks.
The accounting concept is the accruals or matching concept, matching the cost of an asset to the revenues that that asset has helped to generate
How do we satisfy that matching concept?
By depreciating the asset over its estimated useful life – that’s our policy
On what basis shall we write off the cost of that asset – an what basis shall we depreciate it?
20% straight-line (or whatever else you choose) shall be the accounting basis of how we shall calculate the annual depreciation
OK?
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘ias 8’ is closed to new replies.