Depreciation

Depreciation

Didn't find your answer?

dear all, I need some help. I am preparing 5 years forecast for my company and everything was fine till I ended up on the depreciation bit. the company depreciate its assets on straight line basis. with E&M at 25% and building at 10%. I have found this info by having a read through from AR.

my confusion is, how do I calculate depreciation for coming years. I don't have the historic values or know the usefull life of any given asset and if I try to calculate depreciation charge for previous year on one of the additions it doesn't add up.

Am I being to naive or am i missing some info ...

by the way on AR it suggests

"the estimated useful lives of the P&E for the calculation of depreciation are as follows:

M&Equip 25%

F&F 14.29%

Building 10%"

so two issues to which I am trying to find solution

1) how to calculate depreciation on existing assets

2) how to calculate depreciation on additions

appreciate any help and thanks in advance

Replies (1)

Please login or register to join the discussion.

avatar
By thisistibi
23rd Aug 2011 08:51

Need original cost

Normally you will keep a schedule of original fixed assets costs, on which you can calculate depreciation.  That schedule is known as a fixed asset register.  You need to locate it to get the right figures.

Depreciation on additions will depend on your depreciation policy.  You might charge a full year's depreciation in the first year, or time apportion it depending when in the year the asset was purchased.  You should be able to tell what was done previously from the fixed asset register.

Thanks (0)