Hi, May i ask if my understanding is correct for fixed asset accounting?
– We can start depreciating asset for the below condition when asset is placed in service/ ready to use ?
– if there is no invoice received, we should do accrual to recognize opex > then transfer to AUC if asset is not ready to use
– if there is no invoice received, but the good is receipt > opex is recognized > transfer to PPE > start depreciating asset when asset is ready to use ?
– whether the invoice is not paid , we still depreciating asset when it is ready to use..
Kindly advice if my understanding is correct or not.