Question asked by Nobita T 8 years ago
I purchased an existing restaurant (both goodwill & asset valued $90K) in July 2016. Is it fine if my LLC company skip the depreciation for tax return filing 2016 and will do it in 2017?
Hi Nobita - this is an accounting standards question rather than anything to do with the bookkeeping.
Recording and depreciating fixed and intangible assets are covered for Ltd Companies by accounting standards FRS102 or FRS105. Generally, under the former standard, whether a small company or not, you have the choice to recognise the basic asset at cost or fair value, but whichever you chose you must depreciate from the valuation date. Assets under FRS105 will always be recorded at cost and, again, depreciated.
Best answer
You must 