Characteristics of fixed assets can be depreciated

Characteristics of fixed assets can be depreciated

a. Used in operations.
b. Its value declines gradually.
Some assets are not depreciated because land value is not decreased, asset finance, merchandise, and supplies.

c. Depreciated if the useful life of more than one year. For intangible fixed assets, depreciation is called amortization.

d. Parties are entitled to depreciation are:

     Parties that use fixed assets in business activities.
     The owner, can be divided into legal owner and the beneficial owner.


e. When done shrinkage when first used.
f. Basic dalah depreciation cost or revaluation rates. Replacement rates should not be the basis of depreciation.

4. Criteria depreciated assets

      Expected use for more than one accounting period.
     Have a limited useful life.
     Held by an enterprise for use in the production or supply of goods or services, for rental or administrative purposes.