CIMA BA3 Syllabus B. RECORDING ACCOUNTING TRANSACTIONS - Change in useful life. - Notes 22 / 35
Useful life
The useful life of an item of property, plant and equipment should be reviewed at least every financial year-end and, if expectations are significantly different from previous estimates, the depreciation charge for current and future periods should be revised.
This is achieved by writing the net book value off over the asset's revised remaining useful life.
NBV – residual value
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Revised useful life
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Syllabus B. RECORDING ACCOUNTING TRANSACTIONS
B1. Prepare accounting records
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Recording Depreciation
Syllabus B. RECORDING ACCOUNTING TRANSACTIONS
B1. Prepare accounting records