to depreciate the value of an asset by reducing its cost over a period
Surplus on revaluation of assets means that on the even of revaluation, more assets has appreciate in their value then depreciate.
Plant assets only have a limited usage and in order to calculate the life of an asset, you must depreciate the asset according to it's useful life minus salvage value.
Depreciation allocates the cost of a asset over its useful life (except land). If you don't own it, you can't depreciate it. The "right" to buy may never be exercised. Until it is, is usually has no value.
No
No it is not. Depreciation is actually to give the asset holder a break at tax time by adjusting the value. There are no regulations which require anyone to depreciate an item.
Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
to depreciate the value of an asset by reducing its cost over a period
fixed asset does not mean that the value of asset no decrease in future it,s for sure, that,s why we depreciate it annually.....
Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.
Surplus on revaluation of assets means that on the even of revaluation, more assets has appreciate in their value then depreciate.
Yes assets are depreciated in year of sale upto the sale time in fiscal year of sale. IF asset is sold at start of year then there is no depreciation for that fiscal year.
Plant assets only have a limited usage and in order to calculate the life of an asset, you must depreciate the asset according to it's useful life minus salvage value.
In accounting the "installation" if you are referring to the cost of having something installed is an expense and is recorded as such, that is an operating expense and is recorded as such. Since it is an expense it is not an actual asset, so can not be depreciated.
Include the cost of extended maintenance/warranty contracts in the asset valuation if the contract is purchased at the same time (or soon thereafter) as the capital asset. Depreciate these contracts over the useful life of the asset not the the contract life. Do not capitalize payments for contracts not purchased at the same time as the capital asset.
No for many reasons. One, you depreciate tangible assets...a loan is not an asset...if you purchased additions to the property, those would be assets you could depreciate. Cash is intangible. If anything, taking money out of a property would decrease your basis, not increase it! You create the depreciable asset by buying it...not the opposite. You understand you have to recapture depreciation at ordinary rates on sale too, don't you?
A capital purchase is a purchase of equipment, property, or any asset that contributes to the production of a good or service. Depending on your countries tax laws, it would be entered into your asset register and its value would depreciate over a number of years.