ACCA AAA INT Syllabus D. Audit of Historical Financial Information - Non-current Assets - Depreciation - Notes 3 / 41
Quite straightforward but a reminder..
2 main methods
Straight Line
(Cost - RV) / UEL
Reducing Balance
NBV x depreciation rate
The RV and UEL should be kept up to date each year
Any changes made prospectively (i.e. no changing of comparatives)
A change in depreciation policy is actually only a change in accounting estimate not policy
So again changes only made prospectively
On a revaluation - check that all accumulated depreciation on that asset has been cleared to zero
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Non Current Assets - Cost
Syllabus D. Audit of Historical Financial Information
D3. Evaluation and review
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Non-current Assets - Revaluation
Syllabus D. Audit of Historical Financial Information
D3. Evaluation and review