We have recently taken over the year end acounting for a small Ltd Company and have a problem with the depreciation. One class had final year depreciation last year and was left with a slavage value NBV only. Should we carry this forward this year, or just write it off (it is under £10)?
The other class of fixed asset has approx £700 remaining but the client does not have a FA register or any details of past depreciation. The previous years accounts and figures show a 25% on cost charge. However the year to date figure does not compute that this was always the case. At this year end there is not a high enough NBV left for us to effect the same 25% on cost charge. Do we assume this NBV is also salvage value ? Can we effect a depreciation charge ?