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If non-current assets are improved e.g by $8000, do you add the value to the depreciable amount?

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › If non-current assets are improved e.g by $8000, do you add the value to the depreciable amount?

  • This topic has 3 replies, 3 voices, and was last updated 15 years ago by alkemist.
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  • December 31, 2010 at 2:34 pm #46916
    danielglover
    Member
    • Topics: 13
    • Replies: 100
    • ☆☆

    If non-current assets are improved e.g by $8000, do you add the value to the depreciable amount?

    December 31, 2010 at 6:29 pm #74482
    danielglover
    Member
    • Topics: 13
    • Replies: 100
    • ☆☆

    I don’t know.

    January 1, 2011 at 2:54 am #74483
    admin
    Member
    • Topics: 249
    • Replies: 723
    • ☆☆☆☆

    the answer is, yes you do

    January 3, 2011 at 10:05 pm #74484
    alkemist
    Participant
    • Topics: 2
    • Replies: 488
    • ☆☆☆

    It all depends on whether the improvement is itself considered a separate depreciable asset or if it is an improvement on the current asset. For instance if a new wing is added to a building, that new wing may be recognised separately and depreciated separately. You have to look at the context.

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