Depreciation rate calculation

USA Discussion in 'Exams and Studying' started by user123random, Mar 22, 2018.

  1. user123random


    Mar 22, 2018
    Likes Received:
    How should I calculate the depreciation of each type of fixed assets when we have disposals, written off and transfer in/out ?

    I suppose straight line method could be used here , or I am wrong ?

    Besides, does impairment loss affect the calculation for depreciation rate ?



    Attached Files:

    Last edited: Mar 22, 2018
    user123random, Mar 22, 2018
    Yash likes this.
    1. Advertisements

  2. user123random

    bklynboy VIP Member

    Oct 12, 2011
    Likes Received:
    All this schedule shows is a roll forward and cant be used to calculate the depreciation

    You depreciate each asset not each asset class.

    Disposals/Write-offs have no further depreciation since the asset/accumulated depreciation was removed.

    Impairment does affect the depreciation recorded since your BV will now be reduced and needs to factored into the amount that gets depreciated going forward.

    Seems transfers are for assets under construction (meaning they are still being built and not ready for use so no depreciation yet). Once they move to the asset in use category begin depreciating under the asset class schedule it is related to.

    Is this a real world question or an assignment?
    bklynboy, Mar 22, 2018
    1. Advertisements

  3. user123random

    Becky Administrator

    Aug 26, 2011
    Likes Received:
    When I saw it I assumed it's a study question, and I left it because the OP seems to be asking for how to approach the question rather than asking for the answer. Guess we'll see...
    Becky, Mar 23, 2018
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.