Post by Anil Menon on May 11, 2021 2:30:25 GMT
Hi,
This is about the OCS pre-seen for May 2021. In that the company Acellerate treats its rental cars as current assets but also charges depreciation. Is it the right treatment? As per IAS 16 to treat an asset to fixed asset the company should have an intention to keep it for a period of 12 months or through the operating cycle. Is there any provision which allows us to charge depreciation on current assets?
Many Thanks
Anil
This is about the OCS pre-seen for May 2021. In that the company Acellerate treats its rental cars as current assets but also charges depreciation. Is it the right treatment? As per IAS 16 to treat an asset to fixed asset the company should have an intention to keep it for a period of 12 months or through the operating cycle. Is there any provision which allows us to charge depreciation on current assets?
Many Thanks
Anil