• Working out the effective life yourself

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    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    The sort of information which you could use to make an estimate of effective life of an asset includes:

    • the physical life of the asset
    • engineering information
    • the manufacturer's specifications
    • your own past experience with similar assets
    • the past experience of other users of similar assets
    • the level of repairs and maintenance commonly adopted by users of the asset
    • retention periods
    • scrapping or abandonment practices.

    You work out the effective life of a depreciating asset from the asset's start time.

    Last modified: 18 Jul 2006QC 27742