Home For accounting professionals Bookkeeping
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Depreciation

DavidbyworthDavidbyworth Registered Posts: 71
Hi

Just a quick question over the approach for depreciation on fixed assets (computers).

The accounts are for a first year start up and the computer was purchased in 2013 for personal purposes. Normally I would depreciate over 3 years straight line, but this would mean no value to the company which it currently does have. What would the best method be to introduce the computers to the company accounts and revalue?

Thanks

Comments

  • fournaanjezfournaanjez Registered Posts: 32
    Introduce the computer at fair value as if it were bought off of the director and then depreciate with whatever policy the company uses or over its useful economic life.
    Davidbyworth
  • DavidbyworthDavidbyworth Registered Posts: 71
    Thanks for your reply. In view of that I will introduce as you suggest and straight line over 3 years.
    fournaanjez
Sign In or Register to comment.