Hi all,
I know this was covered before but I have a question regarding depreciation and capital allowances. I think it makes no sense at all to include a small asset, for example a PC monitor bought at 150 there; however anywhere I read here people are saying this must added under capital allowances. On my books I would like to depreciate it in the first year as it's such a small asset, but if someone could clarify if it is possible not to include it under capital allowances I would be most grateful. I found accountancy policies of couple universities (or they departments/labs) regarding capitalizing assets and it seems they don't capitalize any computers for example, if they are worth below 5,000. How does this work then? Here's an excerpt:
And here is another one:
DIT lab equipment policy is
The DIT computer equipment policy is
Can someone clarify how does this work as I'm getting a little confused with this stuff...
Thank you!
I know this was covered before but I have a question regarding depreciation and capital allowances. I think it makes no sense at all to include a small asset, for example a PC monitor bought at 150 there; however anywhere I read here people are saying this must added under capital allowances. On my books I would like to depreciate it in the first year as it's such a small asset, but if someone could clarify if it is possible not to include it under capital allowances I would be most grateful. I found accountancy policies of couple universities (or they departments/labs) regarding capitalizing assets and it seems they don't capitalize any computers for example, if they are worth below 5,000. How does this work then? Here's an excerpt:
- Items of equipment & computers are captured on our Equipment Register if they have an individual value of €3,000 & over. Items of individual value of equal or greater than €5,000 are then 'capitalised'.
And here is another one:
DIT lab equipment policy is
- Any lab equipment invoice under €3000 is classified as an expense (& has no deprecation charge allocated to it)
- Any lab equipment invoice over €3000 is depreciated over 5 years (with invoice for €3,000, these assets would have an annual depreciation charge of €600 for the following 5 years)
The DIT computer equipment policy is
- Any computer invoice under €3000 is depreciated at 100% in year 1 (& has no deprecation charge allocated to it)
- Any computer invoice over €3000 is depreciated over 3 years (for example 5 computers on one order costing €700 each would be depreciated over 3 years & would have a collective annual depreciation charge of €1,000)
Can someone clarify how does this work as I'm getting a little confused with this stuff...
Thank you!