Depreciation Guidelines

Kev D

Can anybody assist with any document that details depreciation percentages and how they are calculated. In the AAT studies we see that vehicles depreciate at x % computers at 33.3 % reducing balance. I cannot find any guidelines where these figures are documented. I am doing the books of my Kayak club and would like to know for none profit making organisations such as clubs what is the depreciation rate for clubs such as this. Also in the osborne books they give examples of full depreciation in year one and none in year of disposal but I am lead to believe by the tutor that in practice all depreciation is charged on a monthly pro rata basis. Surely there must be some definitive guidance documents in existence? Any help greatly appreciated. Kev D

Lucy_M

I'd look at the lifetime expectancy of the kayak and any resale value? So cost less resale divided by number of years. Also consider how quickly the value deteriorates, if it's a lot to start and then slows diminishing balance would work better, otherwise keep it simple? Depreciation is set by each company/organisation the key is continuity, always depreciate the same way year on year... Hope that helps?
Lucy

Kev D

Thanks Lucy that appears to be the consensus cheers Kev

Kev D

Thanks Lucy that appears to be the consensus cheers Kev