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Is picture frames depreciable?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Is picture frames depreciable?

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 16, 2017 at 10:07 am #411770
    AvatarAnonymous
    Inactive
    • Topics: 1
    • Replies: 0
    • ☆

    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

    October 16, 2017 at 4:54 pm #411955
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    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

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    Posts
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  • The topic ‘Is picture frames depreciable?’ is closed to new replies.

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