Username:  Password:
Forgot your username or password?        
     
Home Product Tour FAQ Links Forum Pricing Contact Us Buy Now         
MySF Forums
Home       Calendar
        



How do I set up an Asset Pool Expand / Collapse
Author
Message
Posted 22/12/2009 4:56:10 AM
Advanced Member

Advanced MemberAdvanced MemberAdvanced MemberAdvanced MemberAdvanced MemberAdvanced MemberAdvanced MemberAdvanced Member

Group: Forum Members
Last Login: 30/08/2010 1:41:22 AM
Posts: 69, Visits: 177
Hi

My accountant says that not every asset purchased by a small business needs to have a record maintained and depreciation applied. Everthing now goes into an asset pool as long as the cost is greater than $1000. Anything less is immediately written off. Assets added to the pool are depreciated at 15% regardless of the date acquired and there is no need to maintain  a separate "negative" asset account to show the accumulated depreciation. If I make improvements to a property investment (say a new hot water service) how would I set up an asset pool in MySF?

Regards

Post #4462
Posted 22/12/2009 4:00:12 PM
MySF Administrator

MySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF AdministratorMySF Administrator

Group: Administrators
Last Login: 17/05/2010 6:31:15 PM
Posts: 464, Visits: 632
Hi Scott,

To properly account for the cost of the asset and the portion that has been depreciated it is necessary to have an account that represents the asset and also the 'negative' account which is the accumulated depreciation. Having just the one account would lead to a loss of information and would lead to a problems in a computerised and automated system such as MySF Manager. Therefore, it is not possible to add a physical asset requiring depreciation and then process depreciation without using the separate account for the accumulated depreciation. Processing similar transactions manually is also not recommended.

Assets in a 'low value pool' or similar, which are written off fully straight away should be added normally, with an effective life of less than one year. This way they will be depreciated completely straight away.

Please let us know if the above information helps.

Kind regards,

MySF
Post #4463
Posted 22/12/2009 8:39:28 PM
Advanced Member

Advanced MemberAdvanced MemberAdvanced MemberAdvanced MemberAdvanced MemberAdvanced MemberAdvanced MemberAdvanced Member

Group: Forum Members
Last Login: 30/08/2010 1:41:22 AM
Posts: 69, Visits: 177
Thanks, That's fine.

Currently I have been able to set up a property asset plus an intangible asset for company formation costs which I can depreciate and a new carpet which I can depreciate. They are all under a/c 1401. How can I set up the property as an asset under 1401 and shift the other assets under that number to a separate group? The others are not really improvements to the property. I won't depreciate the property but I will depreciate the others. I'd like to group those smaller items under a heading such as "depreciable fixed assets" so that its easier to track them.

Regards

Post #4465
« Prev Topic | Next Topic »



All times are GMT -6:00, Time now is 5:07pm

Powered by InstantForum.NET v4.1.4 © 2010
Execution: 0.188. 9 queries. Compression Disabled.