Default depreciation policies

Introduction

Accounts Production allows users to allocate default depreciation policies to asset categories at both chart and client level.

Time saving benefits of allocating chart level default depreciation rates

Allocating chart level depreciation policies for different asset groups offers time saving benefits, especially where a large number of clients use the same rate for a particular type of asset (for example, 25% reducing balance on motor vehicles)

• The default rates are used in the depreciation accounting policy note in the financial statements

• The rates are used when setting up new assets in Fixed Asset Register, reducing the amount of time needed to set up a new asset.

Client level rates only need to be set up where a client uses a different depreciation rate on an asset category. Client level defaults always override the chart level defaults.