Book Keeping Task/Depreciation
From PCSAR
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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. | ||
| + | An account is created for the category, if one does not already exist. | ||
| + | |||
| + | If the individual items in a single purchase are less than $500, but the total purchase is $500 or over, | ||
| + | they will be treated as a fixed asset if the items are to be used together. | ||
| + | For instance, if 3 GPS were to be purchased at $300 each, they would be considered a fixed asset. | ||
| + | But a single GPS at $300 would not. | ||
| + | |||
== Amortization Expense == | == Amortization Expense == | ||
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Depreciation are done on the declining balance. | Depreciation are done on the declining balance. | ||
| - | As of 2015-08-31 fiscal year end, PCSAR classifies its | + | As of the 2015-08-31 fiscal year end, PCSAR classifies its fixed assets as: |
* Class 8 (20%) | * Class 8 (20%) | ||
** The majority of PCSAR's assets | ** The majority of PCSAR's assets | ||
Revision as of 00:13, 28 January 2016
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. An account is created for the category, if one does not already exist.
If the individual items in a single purchase are less than $500, but the total purchase is $500 or over, they will be treated as a fixed asset if the items are to be used together. For instance, if 3 GPS were to be purchased at $300 each, they would be considered a fixed asset. But a single GPS at $300 would not.
Amortization Expense
PCSAR follows Canada Revenue Agency’s Classes of Depreciable Property guidelines when depreciating assets. 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. Depreciation are done on the declining balance.
As of the 2015-08-31 fiscal year end, PCSAR classifies its fixed assets as:
- Class 8 (20%)
- The majority of PCSAR's assets
- "certain property that is not included in another class", "other equipment you use in business."
- Radios, Satellite Phones, inReach ("electronic communications equipment")
- Trailers: because they are not passenger vehicles and they are not motorized
- Storage Cabinet: "furniture"
- Computer: Class 46 (30%)
- Sierra Command Post: Class 10 (30%)
- Because initial cost was not over $30K, cannot be Class 10.1
- 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"
