Thank you for the answers.
The reason why I asking is that in my company we exclude CAPEX from accruals and just wondering why...
I was also wondering if we should acccrue only cost of depreciation for one period (as the cost will be spread for some of periods)
One reason for exclusion of CAPEX purchases from the accrual process is that the person doing the accruals might only be looking at month-to-month EXPENSE fluctuations and not aware of equipment purchases.
You do not decide to "accrue" (as a decision) depreciation expense. You record it starting in the month the equipment was placed in service. (But this is probably just semantics.)
Yes, Kirby, a lot of it has indeed to do with semantics, when it comes to answering accounting/tax questions to people at different levels of experience. Therefore, I often use the words "it depends" as a request for additional information in order to enable me to give a tailor-made reply.