Useful life: Difference between revisions
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imported>Doug Williamson (Classify page.) |
(Add quote from IAS 16.) |
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The asset should be depreciated over its useful life. | The asset should be depreciated over its useful life. | ||
:<span style="color:#4B0082">'''''Estimation of useful life for IAS 16 financial reporting is a matter of judgement'''''</span> | |||
:"The useful life of an asset is defined in terms of the asset’s expected utility to the entity. | |||
:The asset management policy of the entity may involve the disposal of assets after a specified time or after consumption of a specified proportion of the future economic benefits embodied in the asset. | |||
:Therefore, the useful life of an asset may be shorter than its economic life. | |||
:The estimation of the useful life of the asset is a matter of judgement based on the experience of the entity with similar assets." | |||
:''IAS 16 - Property, plant and equipment - paragraph 57.'' | |||
== See also == | == See also == | ||
* [[Accounting]] | |||
* [[Asset management]] | |||
* [[Depreciating asset]] | * [[Depreciating asset]] | ||
* [[Depreciation]] | * [[Depreciation]] | ||
* [[Economic life]] | |||
* [[Financial reporting]] | |||
* [[IAS 16]] | |||
* [[Judgement]] | |||
* [[Life]] | |||
* [[Property, plant and equipment]] | |||
* [[Reporting entity]] | |||
* [[Short life asset]] | * [[Short life asset]] | ||
* [[Useful economic life]] | |||
* [[Utility]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] |
Revision as of 20:50, 29 October 2023
Accounting.
The length of time an asset is in use.
The asset should be depreciated over its useful life.
- Estimation of useful life for IAS 16 financial reporting is a matter of judgement
- "The useful life of an asset is defined in terms of the asset’s expected utility to the entity.
- The asset management policy of the entity may involve the disposal of assets after a specified time or after consumption of a specified proportion of the future economic benefits embodied in the asset.
- Therefore, the useful life of an asset may be shorter than its economic life.
- The estimation of the useful life of the asset is a matter of judgement based on the experience of the entity with similar assets."
- IAS 16 - Property, plant and equipment - paragraph 57.