UK Potential Asset Treatment

[Jen555]

Hello all,

I am new to accountancy and I have been asked to manage the fixed assets register. Also I am involved in posting accruals and depreciation etc.

I have been asked to accrue for a machine we are most likely to be buying in the next few months. But when I read the relevant IAS, it doesn't mention accruing for future assets. Only depreciate the here and now.

What action do I need to take and what is the correct treatment for this scenario?

Appreciate your help

Thanks

 

[Fidget]

What's the company's depreciation policy on assets bought in-year?

 

[Jen555]

What's the company's depreciation policy on assets bought in-year?

Hi, the straight line method. I guess my query is, do we account anywhere for buying an asset in the future? I'm not sure if we can provide for this or not?

Thanks

 

[Fidget]

You can only accrue for it if there's a definite agreement to make the purchase.