For a depreciable asset,the amount of depreciation recognised shall be in accordance with AASB 116.The asset shall be:

Question

Quizplus · Accepted Answer

AASB 116 states that for a depreciable asset leased by a lessee, the amount of depreciation recognized should be over the shorter of the lease term and its useful life unless there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term. If there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be fully depreciated over the shorter of the lease term and its useful life. Option B matches this requirement.

For a Depreciable Asset,the Amount of Depreciation Recognised Shall Be