Posted on 28th May 2021 at 14:40
From Our What'sUp? Workshop 26 May 2021
Many businesses have assets in the form of equipment which is used in the provision of services or manufacture. Each asset has an expected life, and the cost of these assets is offset in the accounts over a period of time so that the value within the company reduces.
That’s the financial aspect.
However, this same equipment adds value to the output of the company. Once the expected life has been reached, do we discard them and purchase new ones?