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Former Member
May 06, 2014 at 01:15 PM

Asset Accounting for Different Accounting Policies


Hello All!

Currently :

1) As per Company's Accounting Policy only the Assets above a threshold amount (say 5000$) should be considered as Asset. And if it is below the threshold, it should be expensed out.

2) However, for the Local Tax Accounting purpose, there is no threshold applicable. So the Asset even if below threshold will be an Asset.

So Ideally what Business with reference to these Low value Assets want :

1) There won' be any Asset acquired with respect to the Depreciation Area 01 ( Accounting Depreciation Area).

So it will always have 0 amount in that depreciation area for acquisition. As this amount will be expensed out.

2) However in the depreciation area 15 ( Taxation Depreciation Area) there will be ayquistion, depreciation etc on the normal rules.

Can anybody explain, how can it be acheived?

Just for the information:

1) Accounting Depreciation Area is the Real Depreciation Area.

2) Taxation Depreciation Area is statistical in nature.

Thanks in Advance!