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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?
If non-current assets are improved e.g by $8000, do you add the value to the depreciable amount?
I don’t know.
the answer is, yes you do
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.