do we depreciate
cornflower
Registered Posts: 129 Dedicated contributor 🦉
My company has moved into a new building but still owns the old one even though it is up for sale.
Can someone tell me if this building still gets depreciated?
Can someone tell me if this building still gets depreciated?
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Comments
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I would say as the building is still currently owned buy your company you will still need to show depreciation in the accounts0
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cornflower wrote: »My company has moved into a new building but still owns the old one even though it is up for sale.
Can someone tell me if this building still gets depreciated?
If your company reports under IFRS, then it should account for the asset held for sale in accordance with IFRS 5, provided it meets the criteria as qualifying as held for sale. If the building qualifies, IFRS 5 says the building should be carried at fair value and depreciation should not be charged.
If your company reports under FRS/FRSSE then this is where the is a difference to the international regime. There is no equivalent FRS that deals with assets held for sale. FRS 15 'Tangible Fixed Assets' does not exempt assets held for sale from depreciation. The only grounds for not charging depreciation are that the depreciation rates are immaterial.
Regards
Steve0
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