Depreciation

ereid
ereid Registered Posts: 28 Regular contributor ⭐
in General accounting discussion
I have boiled my head a bit by over thinking, I am revising someones attempt at A Fixed asset spreadsheet however it has perplexed me somewhat.

It is using the RDB method and it is calulating or not, whether to include disposals and additions in the Charge for the year?

Not sure after being out the loop for a little while, if anyone can help straighten this one Please ?

Many thanks

Comments

  • burg
    burg Registered, Moderator Posts: 1,441 mod
    Not quite sure what your question is?

    Do you want to send the document to someone to have a look at?

    If so I may be able to have a look.

    ian.morgan@mbsaccountants.co.uk
    Regards,

    Burg
  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
    Depreciation

    Hi

    I would depreciate in year of purchase but not in year of disposal.
  • stevef
    stevef Registered Posts: 258 Dedicated contributor 🦉
    I think this is a matter of setting your accounting policy on this issue and then applying it consistently.

    My Authority do not depreciate in the year of purchase but do deprciate for the full year in the year of disposal. This allows us to complete the depreciation charge journal before the end of the financial year (speeding up the closure process) and makes capital charges budgeting much easier.

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