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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Is picture frames depreciable?
Hi,
My company recently purchased some picture frames which cost $1244, it exceeds the threshold for PPE ($500). So should I capitalize the expense as fixed assets. If yes, what is the useful life?
Thanks & Best Regards,
Cindy
If your company had bought 100 calculators and the cost had been $1,244, would you have capitalised them?
I think that the sensible answer is for you to consider individual items (if they are separable … and clearly picture frames ARE separable) and, given that their individual value is most probably less than the $500 threshhold, I would expense them rather than capitalise
But you shouldn’t really be asking me questions from work … I’m here to answer students’ questions about their studies
However, with your case I am prepared to make an exception. Could you please let me know your company’s name address and invoicing details so that I can submit my invoice for advisory services
Thanks