Depreciation of Construction Equipment
Code: 5137
👁 Views: 10
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Depreciation expense for equipment and machinery owned by the company and used directly in construction projects (e.g., excavators, loaders, cranes, mixers, compressors). This depreciation is allocated to projects based on usage.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 2 / IAS 16 / IAS 37
Inventories / PPE / Provisions
US GAAP
ASC 330 / ASC 360 / ASC 450
Inventory / PPE / Contingencies
❓ Frequently Asked Questions
Q: How is depreciation of construction equipment allocated to projects?
A: Based on each project's equipment usage hours, days, or any reasonable and consistent allocation basis.