Editing Book Keeping Task/Depreciation
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- | + | == Fixed Assets == | |
- | + | Any purchase of $500 or over for an asset that will not be used up in the year is placed in a Fixed Asset account. | |
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- | Any purchase of $500 or over for an asset that will not be used up in | + | |
An account is created for the category, if one does not already exist. | An account is created for the category, if one does not already exist. | ||
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PCSAR will continue to use the categories as is, without attempting to adjust for previous years. | PCSAR will continue to use the categories as is, without attempting to adjust for previous years. | ||
- | + | == Amortization Expense == | |
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PCSAR follows Canada Revenue Agency’s [http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/rprtng/cptl/dprcbl-eng.html Classes of Depreciable Property guidelines] when depreciating assets. | PCSAR follows Canada Revenue Agency’s [http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/rprtng/cptl/dprcbl-eng.html Classes of Depreciable Property guidelines] when depreciating assets. | ||
Assets are depreciated at the specified percentage each year. | Assets are depreciated at the specified percentage each year. | ||
50% of the stated rate is used for assets that are purchased within the financial year. | 50% of the stated rate is used for assets that are purchased within the financial year. | ||
- | + | Depreciation are done on the declining balance. | |
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As of the 2015-08-31 fiscal year end, PCSAR classifies its fixed assets as: | As of the 2015-08-31 fiscal year end, PCSAR classifies its fixed assets as: | ||
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** Because initial cost was not over $30K, cannot be Class 10.1 | ** Because initial cost was not over $30K, cannot be Class 10.1 | ||
* Pickup Truck: Class 10 (30%) | * Pickup Truck: Class 10 (30%) | ||
- | * | + | * Equipment Shed: Class 6 (10%) |
** "made of ... corrugated metal" and "the building has no footings or other base supports below ground level" | ** "made of ... corrugated metal" and "the building has no footings or other base supports below ground level" | ||
- | + | == Write off == | |
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