Questions & Answers
Changing depreciation during the reporting period
Question We are a manufacturing company and we applied straight-line depreciation method for our assets. During the year, our company revised major production plans, compared them with useful lives of our assets and we found out that the change was necessary. Can we make the…
Acquisition of asset after testing period
Question We ordered a machine from a supplier. The details are as follows: 1 January 20X1: We pay the prepayment of 40%. 1 March 20X1: The supplier delivers a machine and we pay 50% of its price. The machine is ready to use. We have…
Depreciation when asset is disposed off
Question Can we depreciate assets those are disposed of during the year? For instance, if one asset is used till October 10 and then sold on that day. Do we have to charge depreciation for the asset till October 10, 2020 since we have used…
Depreciation of ROU related to land
Question We entered into a contract to lease a plot of land. We will be using the land for 20 years and then we will vacate it and return it to its legal owner. We are aware that under IFRS 16, we need to account…
Impairment and subsequent depreciation
Question We recognized impairment loss on one of our buildings because its fair value was by CU 40 000 lower than its carrying amount. We depreciated that building on a straight-line basis over 40 years. How should we continue depreciating the building after recognition of…