Depreciation
Davidbyworth
Registered Posts: 71
in Bookkeeping
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
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
0
Comments
-
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.1
-
Thanks for your reply. In view of that I will introduce as you suggest and straight line over 3 years.
1