Anyone know what is CP method? I am just reading a depreciation schedule from an accountant. It is related to a commercial shop building is that for buildings that has a life less then 50yrs that can be depreciated as normally in the past?

Cheers.

rayonline_tm - 2021-10-28 15:00:00

Commercial Premises

gyrogearloose - 2021-10-28 15:24:00

Thanks for that :)

rayonline_tm - 2021-10-28 16:04:00

gyrogearloose wrote:

Commercia-
l Premises

It is actually Cost Price and DV is diminishing value. Say the asset was purchased at the beginning of the period and cost $1000, and CP rate was 10%, the depreciation would be $100 for every year until it's book value was $0. With diminishing value the first year would be $100, the second year would be $90, being $1000 less $100. The third year would be $81 and so on until it reach $0.

Edited by joanie04 at 9:50 pm, Thu 28 Oct

joanie04 - 2021-10-28 21:49:00

Thanks for that yep I figured it out. CP is SL right? What might be reasons an accountant have used CP for buildings (it is earthquake prone) but they used DV for other things?

Everywhere on the Internet refers to the methods as SL and DV so I couldn't find what was CP ....

Edited by rayonline_tm at 9:59 am, Fri 29 Oct

rayonline_tm - 2021-10-29 09:58:00

The member deleted this message.

lizzyj - 2021-10-29 10:29:00

Rules and regulations might just be one reason.

landylass - 2021-10-29 11:39:00