Depreciation Query

[cupcake_queen]

Hi,

I have an asset where the costs are coming in in tranches, do I make an adjustment for the total asset cost depreciation to date once all the costs have come in?

Thanks

 

[kirby]

Yes. What is important is the date the asset was placed into service. That is when depreciation should start.

 

[davidotieno]

Debit the progressive costs into WIP. Capitalize the assets when all costs have been received and start depreciation in then. Note: Its only when its complete that future economic benefits will start to derive.