Depreciation Accumulations

Code: 1220
👁 Views: 65

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Accumulations Deperciation of Fixed Assets , Plant, Property and Equipments

Sub-accounts

1221

Accumulated Depreciation Buildings

1222

Accumulated Depreciation Machinery

1223

Accumulated Depreciation Vehicles

1224

Accumulated Depreciation Office Furniture

1225

Accumulated Depreciation - Electronic Devices

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 16 Property, Plant and Equipment
US GAAP ASC 360 Property, Plant and Equipment

❓ Frequently Asked Questions

Q: What is the difference between accumulated depreciation and depreciation expense?

A: Depreciation expense appears on the income statement and represents current period depreciation. Accumulated depreciation appears on the balance sheet as a contra-asset deducted from asset cost and represents total depreciation accumulated since acquisition.

Q: How is accumulated depreciation calculated upon asset sale?

A: The accumulated depreciation balance for the asset is closed (written off) against the asset account, and the difference (gain or loss) appears on the income statement.