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General Accounting Discussions: Depreciation & Useful Life

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  1.  
    • CommentAuthormaka
    • CommentTimeMar 7th 2007
     
    Can someone assist in finding the actual useful life for depreciating items? For example a GAAP website to let me know that a chair should be depreciated over 3 years vs. 5 years. I am running into search engine issues. Thanks in advance.
    • CommentAuthorduncanwil
    • CommentTimeMar 8th 2007
     
    Depends who you are and where you are to some extent.

    For some good examples and guidance, take a look at a variety of annual reports of public corporations and see what their depreciation policies and rate are: you will find this information in the notes to the accounts after the Income Statement, Balance Sheet etc in the report.

    What did they mean by depreciating over 3 v 5 years? Did they mean from 3 to 5 years?

    Also, don't forget, the choice of useful life is yours, the company's. Accountants generally go with the herd though so you will find general standards in the way that I have said.

    Duncan
    • CommentAuthormaka
    • CommentTimeMar 9th 2007
     
    thanks. Basically I am reviewing the depreciation schedule and found discrepancies in how assets are depreciated. For example, a chair bought two years ago is on the books for 10 years depreciation whereas the one just recently purchased is being depreciated over 5 years. Just wanted to see how the rest are doing it.
    Thankful People: Jeffrey Estabrook
  4.  
    I agree with the maka and must say that its approach is very right!

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