IAS 16Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5

WorkpaperIAS 16 — Property, Plant and EquipmentL1 · L2 · L3

Depreciation calculation

9 missions9 sections to document45 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

Calculate the charge for the period under the method retained (straight-line with time apportionment, diminishing balance, units of production or by component) from the basis, the residual value and the remaining useful life, then the closing carrying amount. Only the method retained is filled in; the entry and the impact on the financial statements follow from it.

9 sections · 31 blocks · 8 calculations · 1 entry

IAS 16 §30
IAS 16 §43
IAS 16 §50
IAS 16 §53
IAS 16 §55
IAS 16 §60
IAS 16 §62
IAS 16 §73

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

9 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity

Acquisition of a machining centre

Case tasks documented here

Calculate the depreciable amount and the annual depreciation charge.
From what date does depreciation begin? Calculate the depreciation charge for 20X1.
What journal entries do you record in 20X1?
What is the impact of these entries on the financial statements at 31 December 20X1?

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
20X1-04-01
Cost or revalued amount
NumberRequired
265,000
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
265,000
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
15,000
Remaining useful life (years, or expected units for the units of production method)
Number
10
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
9 months
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
Depreciation method
ChoiceRequired
Straight-line
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
250,000
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
25,000
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
18,750
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
265,000
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
Components depreciated separately
Closing carrying amount
CalculationRequired
246,250
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, straight-line 18,750
Accumulated depreciation, straight-line 18,750

Account	Debit	Credit
Charge, straight-line	18,750
Accumulated depreciation, straight-line		18,750

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedPass
The depreciation entry balancesPass

Assets: -18,750
Liabilities: 0
Profit or loss: -18,750
OCI: 0
Equity: -18,750

File and entity

Logistics warehouse: components and replacement

Case tasks documented here

Calculate the annual depreciation charge for the warehouse for 20X1 to 20X5.
Calculate the depreciation charge for 20X6 after these transactions.
What journal entries do you record in 20X6?

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
Cost or revalued amount
NumberRequired
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
Remaining useful life (years, or expected units for the units of production method)
Number
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
1,030,000 · 40 · 50,000 | 150,000 · 15 | 180,000 · 12 | 120,000 · 10 | 20,000 · 5
Depreciation method
ChoiceRequired
By component
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
65,500
Components depreciated separately
Closing carrying amount
CalculationRequired
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, components 65,500
Accumulated depreciation, components 65,500

Account	Debit	Credit
Charge, components	65,500
Accumulated depreciation, components		65,500

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedNot filled in this instance
The depreciation entry balancesPass

Assets: -65,500
Liabilities: 0
Profit or loss: -65,500
OCI: 0
Equity: -65,500

File and entity

Logistics warehouse: components and replacement

Case tasks documented here

Calculate the annual depreciation charge for the warehouse for 20X1 to 20X5.
Calculate the depreciation charge for 20X6 after these transactions.
What journal entries do you record in 20X6?

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
Cost or revalued amount
NumberRequired
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
Remaining useful life (years, or expected units for the units of production method)
Number
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
1,030,000 · 40 · 50,000 | 150,000 · 15 | 240,000 · 12 | 120,000 · 10 | 30,000 · 5
Depreciation method
ChoiceRequired
By component
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
72,500
Components depreciated separately
Closing carrying amount
CalculationRequired
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, components 72,500
Accumulated depreciation, components 72,500

Account	Debit	Credit
Charge, components	72,500
Accumulated depreciation, components		72,500

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedNot filled in this instance
The depreciation entry balancesPass

Assets: -72,500
Liabilities: 0
Profit or loss: -72,500
OCI: 0
Equity: -72,500

File and entity

Printing press: revision of estimates

Case tasks documented here

Calculate the carrying amount of the press at 1 January 20X4.
Calculate the revised 20X4 charge and the effect of the change in estimate on the period.
What journal entry do you record for the 20X4 depreciation?
What is the impact on the 20X4 financial statements, including the notes?

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
Cost or revalued amount
NumberRequired
900,000
Opening accumulated depreciation
Number
255,000
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
645,000
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
20,000
Remaining useful life (years, or expected units for the units of production method)
Number
4
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
12 months
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
Depreciation method
ChoiceRequired
Straight-line
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
625,000
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
156,250
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
156,250
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
645,000
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
Components depreciated separately
Closing carrying amount
CalculationRequired
488,750
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, straight-line 156,250
Accumulated depreciation, straight-line 156,250

Account	Debit	Credit
Charge, straight-line	156,250
Accumulated depreciation, straight-line		156,250

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedPass
The depreciation entry balancesPass

Assets: -156,250
Liabilities: 0
Profit or loss: -156,250
OCI: 0
Equity: -156,250

File and entity

Professional file: construction and commissioning of a production site

Case tasks documented here

Calculate the 20X1 depreciation by component.
Propose the 20X1 depreciation entry.
Calculate the 20X2 depreciation.
Propose the 20X2 entries: depreciation and revision of the dismantling liability.

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
20X1-10-01
Cost or revalued amount
NumberRequired
3,100,000
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
3,100,000
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
0
Remaining useful life (years, or expected units for the units of production method)
Number
40
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
3 months
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
Depreciation method
ChoiceRequired
Straight-line
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
3,100,000
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
77,500
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
19,375
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
3,100,000
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
Components depreciated separately
Closing carrying amount
CalculationRequired
3,080,625
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, straight-line 19,375
Accumulated depreciation, straight-line 19,375

Account	Debit	Credit
Charge, straight-line	19,375
Accumulated depreciation, straight-line		19,375

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedPass
The depreciation entry balancesPass

Assets: -19,375
Liabilities: 0
Profit or loss: -19,375
OCI: 0
Equity: -19,375

File and entity

Professional file: construction and commissioning of a production site

Case tasks documented here

Calculate the 20X1 depreciation by component.
Propose the 20X1 depreciation entry.
Calculate the 20X2 depreciation.
Propose the 20X2 entries: depreciation and revision of the dismantling liability.

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
20X1-10-01
Cost or revalued amount
NumberRequired
480,000
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
480,000
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
0
Remaining useful life (years, or expected units for the units of production method)
Number
20
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
3 months
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
Depreciation method
ChoiceRequired
Straight-line
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
480,000
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
24,000
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
6,000
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
480,000
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
Components depreciated separately
Closing carrying amount
CalculationRequired
474,000
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, straight-line 6,000
Accumulated depreciation, straight-line 6,000

Account	Debit	Credit
Charge, straight-line	6,000
Accumulated depreciation, straight-line		6,000

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedPass
The depreciation entry balancesPass

Assets: -6,000
Liabilities: 0
Profit or loss: -6,000
OCI: 0
Equity: -6,000

File and entity

Professional file: construction and commissioning of a production site

Case tasks documented here

Calculate the 20X1 depreciation by component.
Propose the 20X1 depreciation entry.
Calculate the 20X2 depreciation.
Propose the 20X2 entries: depreciation and revision of the dismantling liability.

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
20X1-10-01
Cost or revalued amount
NumberRequired
1,555,559.98
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
1,555,559.98
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
0
Remaining useful life (years, or expected units for the units of production method)
Number
15
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
3 months
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
Depreciation method
ChoiceRequired
Straight-line
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
1,555,559.98
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
103,704
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
25,926
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
1,555,559.98
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
Components depreciated separately
Closing carrying amount
CalculationRequired
1,529,633.98
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, straight-line 25,926
Accumulated depreciation, straight-line 25,926

Account	Debit	Credit
Charge, straight-line	25,926
Accumulated depreciation, straight-line		25,926

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedPass
The depreciation entry balancesPass

Assets: -25,926
Liabilities: 0
Profit or loss: -25,926
OCI: 0
Equity: -25,926

File and entity

Professional file: construction and commissioning of a production site

Case tasks documented here

Calculate the 20X1 depreciation by component.
Propose the 20X1 depreciation entry.
Calculate the 20X2 depreciation.
Propose the 20X2 entries: depreciation and revision of the dismantling liability.

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
20X1-10-01
Cost or revalued amount
NumberRequired
200,000
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
200,000
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
0
Remaining useful life (years, or expected units for the units of production method)
Number
5
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
3 months
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
Depreciation method
ChoiceRequired
Straight-line
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
200,000
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
40,000
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
10,000
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
200,000
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
Components depreciated separately
Closing carrying amount
CalculationRequired
190,000
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, straight-line 10,000
Accumulated depreciation, straight-line 10,000

Account	Debit	Credit
Charge, straight-line	10,000
Accumulated depreciation, straight-line		10,000

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedPass
The depreciation entry balancesPass

Assets: -10,000
Liabilities: 0
Profit or loss: -10,000
OCI: 0
Equity: -10,000

File and entity

Professional file: construction and commissioning of a production site

Case tasks documented here

Calculate the 20X1 depreciation by component.
Propose the 20X1 depreciation entry.
Calculate the 20X2 depreciation.
Propose the 20X2 entries: depreciation and revision of the dismantling liability.

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
Cost or revalued amount
NumberRequired
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
Remaining useful life (years, or expected units for the units of production method)
Number
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
3,100,000 · 40 | 480,000 · 20 | 1,555,559.98 · 15 | 200,000 · 5
Depreciation method
ChoiceRequired
By component
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
245,204
Components depreciated separately
Closing carrying amount
CalculationRequired
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Account Debit Credit
Charge, components 245,204
Accumulated depreciation, components 245,204

Account	Debit	Credit
Charge, components	245,204
Accumulated depreciation, components		245,204

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References

Checks and financial statement impact

The closing carrying amount is determinedNot filled in this instance
The depreciation entry balancesPass

Assets: -245,204
Liabilities: 0
Profit or loss: -245,204
OCI: 0
Equity: -245,204

Inputs

Asset and period
TextRequired
Date the asset is available for use
DateRequired
Cost or revalued amount
NumberRequired
Opening accumulated depreciation
Number
Accumulated impairment losses
Number
Basis: cost, or carrying amount at the date of the last change in estimate
NumberRequired
After a change in estimate, the remaining depreciation is calculated prospectively on the carrying amount at the date of the change.
Residual value
Number
Remaining useful life (years, or expected units for the units of production method)
Number
Useful life may be expressed in years or in expected units of production.
Months of depreciation in the period
Number
Diminishing balance rate per period
Number
Units produced in the period
Number
Components depreciated separately
Table
Depreciation method
ChoiceRequired
Straight-line / Diminishing balance / Units of production / By component

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Depreciation for the period

Calculations

IAS 16 §30IAS 16 §43IAS 16 §50IAS 16 §53IAS 16 §55IAS 16 §60IAS 16 §62

Depreciable amount
Calculation
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Annual charge (straight-line)
Calculation
Basis: cost, or carrying amount at the date of the last change in estimate ; Residual value ; Remaining useful life (years, or expected units for the units of production method)
Charge for the period (straight-line, time-apportioned)
Calculation
Annual charge (straight-line) ; Months of depreciation in the period
Opening carrying amount
CalculationRequired
Cost or revalued amount ; − Opening accumulated depreciation ; − Accumulated impairment losses
Charge for the period (diminishing balance)
Calculation
Opening carrying amount ; Diminishing balance rate per period
Charge for the period (units of production)
Calculation
Depreciable amount ; Remaining useful life (years, or expected units for the units of production method) ; Units produced in the period
Charge for the period (by component)
Calculation
Components depreciated separately
Closing carrying amount
CalculationRequired
Opening carrying amount ; − Charge for the period (straight-line, time-apportioned) ; − Charge for the period (diminishing balance) ; − Charge for the period (units of production) ; − Charge for the period (by component)

Journal entries

Entries

Depreciation charge for the period
EntryRequired
Debit Charge, straight-line ← Charge for the period (straight-line, time-apportioned) ; Credit Accumulated depreciation, straight-line ← Charge for the period (straight-line, time-apportioned) ; Debit Charge, diminishing balance ← Charge for the period (diminishing balance) ; Credit Accumulated depreciation, diminishing balance ← Charge for the period (diminishing balance) ; Debit Charge, units of production ← Charge for the period (units of production) ; Credit Accumulated depreciation, units of production ← Charge for the period (units of production) ; Debit Charge, components ← Charge for the period (by component) ; Credit Accumulated depreciation, components ← Charge for the period (by component)

Method and start date

Judgment

IAS 16 §55IAS 16 §60IAS 16 §62

Does the method reflect the pattern of consumption of benefits?
JudgmentRequired
Yes, method retained / No, method to revise
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Start (and cessation) of depreciation
JudgmentRequired
Date supported / Date to review
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the charge and the closing carrying amount
ConclusionRequired

Impact on the financial statements

FS impact

Impact by heading, derived from the entries above (the Notes row points to the disclosures)
TableRequired

Disclosures

Disclosure

IAS 16 §73

Depreciation disclosures
ChecklistRequired
- Depreciation methods used
- Useful lives or depreciation rates used
- Gross carrying amount and accumulated depreciation at the beginning and end of the period
- Depreciation of the period in the reconciliation

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the registry)
References