[mgnyc]

If an asset is purchased on the 20th of the month when is it acceptable to begin depreciation for GAAP?

To be clear I am not talking about taxes I’m talking FASB/GAAP – financial statements protocol.

Aud 73, 79
Reg 70, 60, 67, 76
Far 70, 66, 72, 87
Bec 77

[Anonymous]

You can recognize 1/3 of the monthly depreciation at the end of the current month.

[Anonymous]

You can recognize 1/3 of the monthly depreciation at the end of the current month.

[mgnyc]

@cscpa21 thanks for the response.

Have you seen this in pronouncements or practice? Are there other options?

thanks

Aud 73, 79
Reg 70, 60, 67, 76
Far 70, 66, 72, 87
Bec 77

[mgnyc]

@cscpa21 thanks for the response.

Have you seen this in pronouncements or practice? Are there other options?

thanks

Aud 73, 79
Reg 70, 60, 67, 76
Far 70, 66, 72, 87
Bec 77

[Anonymous]

Nope, honestly I have never really see this come up as an issue in practice. However, I would imagine that it would be fine (and easier) to start depreciation the next month just thinking in terms of materiality….

[Anonymous]

Nope, honestly I have never really see this come up as an issue in practice. However, I would imagine that it would be fine (and easier) to start depreciation the next month just thinking in terms of materiality….

[mgnyc]

@cscpa21

Just got off phone with AICPA, evidently the codification doesn't touch this specifically.

As far as practice is concerned I'm seeing answers all over the place, including beginning of month purchased regardless of date which seems odd.

Thanks for your input.

mgnyc

Aud 73, 79
Reg 70, 60, 67, 76
Far 70, 66, 72, 87
Bec 77

[mgnyc]

@cscpa21

Just got off phone with AICPA, evidently the codification doesn't touch this specifically.

As far as practice is concerned I'm seeing answers all over the place, including beginning of month purchased regardless of date which seems odd.

Thanks for your input.

mgnyc

Aud 73, 79
Reg 70, 60, 67, 76
Far 70, 66, 72, 87
Bec 77

[mla1169]

In practice, I've never depreciated less than a full month ( and I've been doing this nearly 20 years). You CAN depreciate a partial month but as was mentioned above it's usually not material. I've always depreciated the full month regardless of the placed in service date.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[mla1169]

In practice, I've never depreciated less than a full month ( and I've been doing this nearly 20 years). You CAN depreciate a partial month but as was mentioned above it's usually not material. I've always depreciated the full month regardless of the placed in service date.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Author]

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