Question

Listed below are several statements about items required to be disclosed for depreciation. Some of the items are required to be disclosed and some are not required to be disclosed.

Required: Indicate in the space provided which items are required to be disclosed for depreciation by checking the appropriate box next to your answers

NOTE: THIS IS A MULTIPLE ANSWER QUESTION WITH MORE THAN ONE ANSWER

		A general description of the method(s) used for computing depreciation
		the balance of major classes of depreciable assets
		the accumulated depreciation for each major class of depreciable asset or in total
		depreciation expense for the period
		the useful lives for each major class of depreciable asset

Answer 1

All of the above items are required to disclosed for Depreciation.

Explaination-

1. It is required to disclose which method is used for providing the Depreciation like SLM method, WDV method, SUM OF THE YEAR method etc. to calculate the amount of Depreciation.

2. Balance of depreciable assets is to be disclosed so that by providing mehod and rate amount of Depreciation can be calculate.

3. If original cost is given then accumulated Depreciation should be disclosed. Depreciation will be calculate after deducting accumulated Depreciation from the original cost.

4. Depreciation expense provided for the period shoud be disclosed.

5. In SLM method Depreciation is calculated by dividing no. Of useful life into total cost. So in this situation useful life should be disclosed.