Depreciation rates for software purchase?

we have purchased a software 2 months before the financial year end and now I want to depreciate the same. would like to know what are depreciation rates I should use for the same and should I calculate for 2 months or for full year?

Comments

  • CeeJaySix
    CeeJaySix Well-Known Registered Posts: 645
    Depreciate to the residual value over the useful economic life - we cannot tell you what that is.

    If it's a significant figure, recognise the two months; if not, common practice is to charge a full year in the year of acquisition and none in the year of disposal.
    MarieNoelle
  • MarieNoelle
    MarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,433
    What is the company' s policy for depreciation?
Privacy Policy