Book Keeping Task/Depreciation

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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.
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Depreciation are done on the declining balance.
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Depreciation ais done on the declining balance.
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:

Revision as of 20:44, 27 September 2017

Contents

Status of this Document

This procedure was reviewed and accepted by the lead auditor, Susanna MacGarva, 2016-01-29.

Procedures

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.

In some cases, this practice has not been applied to purchases in previous years. PCSAR will continue to use the categories as is, without attempting to adjust for previous years.

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 ais 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"

Write off

When the declining balance of an account is less than $50, the entire balance will be written off.

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