Ah, didn't realize this was a GAAP thing. I'll go dig into it, trying to
figure out what info would be needed to input a formula to do this
automatically.
On 12/12/2015 10:12 AM, Tushar Patel wrote:
GAP accounting standard allows you to come up with company policy. Where policy
can say any item under $1000 will be expense. After that it does not matter how
many items you buy under that price. I am not accountant, you may want to
check with accountant who are familiar with GAP standards. WISPA has vendor
member kiesling, who can guide you in such matter.
Tushar
On Dec 12, 2015, at 9:58 AM, Simon Westlake <[email protected]> wrote:
Can you get away with that on a big purchase though? Or is it because you are
buying it in small quantities?
E.g. if I buy 100 million dollars worth of CPE, I can't imagine I'd get away
with expensing it.
On 12/11/2015 11:47 PM, Ken Hohhof wrote:
I have an asset item called "equipment" and an expense item called "non capital
equipment". If it costs less than $500 each or is likely to be gone, retired or used up before
it can be depreciated, it gets expensed not depreciated. I am reluctant to capitalize CPE. Routers,
servers, APs, backhauls get capitalized if they cost >$500. My accountant has not complained.
If I purchase something other than equipment, like a vehicle or a building, it
goes in its own asset category and my accountant decides what depreciation
schedule is appropriate. I suppose some big piece of software might get
depreciated, I wouldn't know.
Not sure we are handling financed equipment properly. Typically I have 3 year
$1 buyout leases, I don't own it for 3 years, and then it appears to be worth
$1. With a fair market value buyout, I guess you could take that and
depreciate it, but I would probably argue with my accountant about a 5 year
depreciation schedule on equipment that is already 3 years old.
Other special categories would be stuff like "goodwill" and intellectual
property. I guess when you pay $1000 per sub for a WISP whose hard asset have a book
value of $1.58, the rest is goodwill and gets depreciated.
Then there's Section 179.
-----Original Message----- From: Simon Westlake
Sent: Friday, December 11, 2015 10:16 PM
To: [email protected]
Subject: Re: [AFMUG] Calculating depreciation
How are you defining 'like' assets? Would you group together things like
routers and access points? Or are you getting more specific than that?
On 12/11/2015 10:14 PM, Chuck McCown wrote:
There are lots of depreciation methods. Straight line, accelerated, mass
depreciation.
When you acquire assets over time it it is a pain in the ass to have a schedule
for each item.
Mass allows you to throw all like assets into a common pot and take a
percentage of the pot as depreciation expense each year.
That way you don't have to track when they enter.
-----Original Message----- From: Simon Westlake
Sent: Friday, December 11, 2015 8:54 PM
To: [email protected] ; [email protected]
Subject: [AFMUG] Calculating depreciation
When you depreciate your fixed assets, what method do you use to
calculate it?
--
Simon Westlake
Skype: Simon_Sonar
Email: [email protected]
Phone: (702) 447-1247
---------------------------
Sonar Software Inc
The next generation of ISP billing and OSS
https://sonar.software
--
Simon Westlake
Skype: Simon_Sonar
Email: [email protected]
Phone: (702) 447-1247
---------------------------
Sonar Software Inc
The next generation of ISP billing and OSS
https://sonar.software
