- This topic has 3 replies, 3 voices, and was last updated 13 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
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.