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Missed depreciation - How do I correct

Year end accounts with no previous depreciation

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I have a new client who has come to me for year end accounts and corporation tax but when I have looked they did not put any depreciation through for their assets last year. How do I correct this? Can I just put two years worth through in this year to bring it up to date? 

 

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By Truthsayer
03rd Mar 2021 11:23

It depends how material it is. Either put two years' depreciation through this year, or do a prior year adjustment. It's your job to make the appropriate judgement.

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Replying to Truthsayer:
RLI
By lionofludesch
03rd Mar 2021 18:02

Truthsayer wrote:

It depends how material it is. Either put two years' depreciation through this year, or do a prior year adjustment. It's your job to make the appropriate judgement.

This ↑↑↑

It's your call but I'd be surprised if it was material.

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By Paul Crowley
03rd Mar 2021 11:24

Change in accounting policy or just plain wrong last year?

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By cblizzard19
03rd Mar 2021 12:15

Just wrong!

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Replying to cblizzard19:
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By frankfx
03rd Mar 2021 14:16

cblizzard19 wrote:

Just wrong!

Materially wrong?

What is your judgement call?

Tease us with some numbers

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