Depreciation

DavidbyworthDavidbyworth Posts: 70Registered
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 Posts: 32Registered
    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 Posts: 70Registered
    Thanks for your reply. In view of that I will introduce as you suggest and straight line over 3 years.
    fournaanjez
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