Fixed Asset Depreciation Policies
This screen is used to display and manage tangible fixed asset depreciation policies.
A list of the classes of tangible fixed assets is presented together with possible depreciation policy selections. Choose the appropriate one.
Depreciation Policy Options
- N/A
- There are no assets for this asset type
- Straight Line
- Straight line depreciation for the asset type is applied over the estimated useful life as entered here
- Reducing Balance
- Reducing balance depreciation for the asset type is applied using the percentage entered here
- Not Depreciated
- No depreciation is applied to this asset type
Straight line depreciation allocates the amount to be depreciated in equal amounts over the life of the asset. Reducing balance uses a constant percentage amount for each time period which has the effect for depreciating more in the earlier time periods.
Reducing Balance Percentage
If the reducing balance depreciation rule is selected this field is used to define the annual depreciation rate used in depreciation calculations.
Adding a new asset
On the depreciation tab when a new asset is added the depreciation rule is selected as Use Policy for Asset Type