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Basis for not Depreciating

  • 16-11-2012 10:52am
    #1
    kennyb3
    Registered Users, Registered Users 2 Posts: 6,724 ✭✭✭


    Okay so FRS 15 basically suggests fixed assets have a finite life and should be depreciated - unless the useful economic life is greater than 50 years.

    Would anybody not depreciate a building, in this case a community hall, on that basis? So long as you disclosed reasons.


Comments

  • #2
    doctordolittle
    Registered Users, Registered Users 2 Posts: 14 ✭doctordolittle


    kennyb3 wrote: »
    Okay so FRS 15 basically suggests fixed assets have a finite life and should be depreciated - unless the useful economic life is greater than 50 years.

    Would anybody not depreciate a building, in this case a community hall, on that basis? So long as you disclosed reasons.

    If you decide to recognise the tangible assets as having a life in excess of 50 years then you need to do an annual impairment test on accordance with FRS 11


  • #3
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    kennyb3 wrote: »
    Okay so FRS 15 basically suggests fixed assets have a finite life and should be depreciated - unless the useful economic life is greater than 50 years.

    Would anybody not depreciate a building, in this case a community hall, on that basis? So long as you disclosed reasons.

    The asset should be in use before you can depreciate.


  • #4
    doctordolittle
    Registered Users, Registered Users 2 Posts: 14 ✭doctordolittle


    brenbrady wrote: »
    The asset should be in use before you can depreciate.

    Technically that's not 100% correct - the asset must only be available for use for depreciation to commence. In fact, if the asset is available for use and is not being used, the entity should test it for impairment.


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