Managing fixed assets and calculating depreciation
Sounds pretty straightforward, right?
You buy an asset and write it off over its useful life using a method prescribed either by your own accounting policies or the relevant tax authorities.
Well, in practice, whilst this may sound simple, there are lots of real life day-to-day examples of events that occur which can complicate these matters considerably.
At AssetAccountant™, we make it our mission to make managing these events as easy as possible.
Some examples and the kinds of functionality we provide are set out below:
There may be occasions on which you wish to dispose of part of an asset or write off a number of assets you acquired in bulk.
- A business or individual may sell part of a block of land; or
- A hotel chain may write off 20 of 100 chairs it bought in bulk when they were damaged beyond use
It’s amazing we calculated this year’s depreciation in just a matter of minutes!
Veenith Singh - Group Finance Operations Manager, Beca Group
Second element of cost
Following on from components, in some cases, these can be treated as a “second element of cost” of the parent asset with specific tax rules applying to these grouped assets.
Other examples of needing to apply the “second element of cost” rules are for items such as installation costs which should just be added to the original cost of the asset.