My fixed asset report is also showing the 0.00 balances
So I have every single fixed asset for the past 4 years showing takes up a lot of pages.
Have I missed a tick box or something to say dont show 0.00 balances
So I have every single fixed asset for the past 4 years showing takes up a lot of pages.
Have I missed a tick box or something to say dont show 0.00 balances
No, but you may have missed disposing of the fixed assets. See Dispose of fixed assets | Manager. Once an asset is disposed, it no longer appears on following period reports. Of course, assets still in use are normally not disposed, even when fully depreciated.
The example you show also is not a zero-balance situation. All those fixed assets have balances in their At cost and Accumulated depreciation subsidiary accounts. The only things that are zeroes are their book values. And book value is not an account or subaccount balance, but the net of two other subaccounts.
The assets that are 0.00 have been fully depreciated .
I guess you will say that even though the book value is 0.00 its still an asset to the company
Gosh it looks ugly with all those 0.00 and it takes up 4 pages
A fixed asset is an asset as long as it is owned by the business, even if its book value is zero. And accounting isn’t about whether reports are ugly or not. It’s about accurate presentation of information. How lengthy do you think fixed asset reports are for Apple or IBM or IKEA?
Maybe you could consider not listing and depreciating items in assets that are under a certain cost but expend them straight in a P&L account. You could also consider if needed to treat them as prepaid expenses but if depreciated within a year for tax purposes that would not make much sense but for financial oversight it may.
My issue with this report is that every fixed asset is taking 4 lines. This will get very long report way too fast. Should be just one line and if all the information cannot be conceived in single line then this needs to be broken down into two reports.
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The “Total – Asset name” line should be sufficient. It contains all the information of the other 3 lines.
I concur, I suggest maybe having - Cost, Accumulated Depreciation and Net book value as column headings and list all assets in rows. I think it will be much cleaner.
I think your accounting is not right, you should not have any assets that are in use that are fully depreciated. It means that your assumptions for its useful life were not correct in the first place.
I am not sure if you follow the IFRS standards or IFRS for SME or your locally developed GAAP. Most standards are consistent in the treatment of fixed assets (Property, plant and equipment).
Useful life should have been reassessed and a change in estimate should have been processed so that you will not have any assets fully depreciated in your register.
I also noticed that you have low value items on your report. I suggest these could be expensed in the year they are bought based on a capitalisation threshold. We use this a lot because it becomes impractical to keep a register full of low value assets.
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Using assets of zero book value is legitimate.
Depreciation rules depend on laws enacted in each jurisdiction. While there maybe a loose correlation with useful life many laws do not accurately reflect that. For example in Australia 100% depreciation was allowed for business below as specified size and item below a specified amount (as a stimulus for the economy). However if those assets are subsequent sold, tax must be paid on the difference between book value and sale price. So must stay on the asset register till dispose of.
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What I am talking about here is not about laws but Accounting standards for example IAS 16 Property, plant and equipment. This accounting standard can be adopted and applied by an company.
There is a difference between tax laws and accounting standards that is why I made reference to IFRS, IFRS for SME or local GAAP (like US they use US GAAP for accounting)
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I agree with @Patch. It can be quite common to have depreciation methods and periods dictated by law, yet have assets with much longer useful lives. Some of the accounting standards mentioned above do not take that into account. And that is why they are not used in some jurisdictions.
I follow new Zealand IRD rules and I Use DV until assets book value is 0.00.Which is perfectly legal in NZ these assets are also still being used just because they have a book value of 0.00 does not mean they are not in use . And we may or may not expense Items at the time of asset set up it was under 500 and client elected to asset them .Because of COVID it went to 5000 and since the 2021 year back down to 1000. Why would you think after a 70K student loan and 5 years of study and working under a CA I would do it all wrong.
We do use IFRS but NZ IFRS. There are some differences between US GAAP and IFRS
and I dont think South Africa have the same tax rules as New zealand
I take my instruction from Client it used to be any thing under 500 over covid it went to 5K and then in 2021 it went down to 1K and I do expenses alot of and I have done for this client just on set up he want ted the company to look good with assets
Tut I agree
but this is only a one man band not a major company
Thats why I also asked how could I do a custom report with the same Data but just not if book value is 0.00
My apologies if sounded as if I said you have done it wrongly.
I was suggesting 2 things for you.
1st being expense assets below a certain value for example any asset below NZ$1000. This will reduce the number of the fixed assets that you have to maintain on your register.
2ndly, below is an extract from Property, Plant and Equipment (NZ IAS 16)
This allows you revise the useful life of the assets.
Tax rules are different from accounting standards. I am NOT referring to tax rules but Accounting standards. I have checked NewZeland Accounting standards, XRB in NewZeland adapts its standards from IASB. South Africa uses the IFRS as they are but the standards are basically the same.
Revising the estimated useful life will achieve exactly this because the assets will have a carrying amount that will br greater than 0.