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DEPRECIATION AND AMORTISATION for an interim period is computed based on:
AYear-end asset balances applied to all interim periods
BAssets expected to be in service over the full financial year
CPre-budgeted depreciation for the full year proportionately allocated
DAssets actually owned during that interim period — no anticipation of planned acquisitions or disposals later in the year
Answer & Solution
Correct answer: D. Assets actually owned during that interim period — no anticipation of planned acquisitions or disposals later in the year
Depreciation/amortisation reflects assets actually held during the interim period. Planned future acquisitions/disposals are not anticipated.
Related questions
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