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  • 1.  the Unused production Assets in plant

    Posted 02-20-2019 04:09 PM
    Hi

    How to account for the depreciation cost and maintenance for Unused production  line in the plant ?

    Thanks

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    [Ahmed] [Hussein Sayed]
    [Chief accountant ]
    [Advanced Vision Electro Mechanical]
    [Jeddah]
    [Kingdom of Saudi Arabia ]
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  • 2.  RE: the Unused production Assets in plant

    Posted 02-21-2019 09:10 AM
    Depending if the Unused production line have ever been put to use then it will be depreciated same way as prior year.If not yest put to use ever then still be accounted as WIP and no Dep will be charged.

    Thanks,
    Vinita Chaudhary




    Original Message


  • 3.  RE: the Unused production Assets in plant

    Posted 02-22-2019 03:35 AM
    Thank you for message ,

    The production line is idle for less of demand , currently no demand for products produced from this production line .


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    [Ahmed] [Hussein Sayed]
    [Assistant Finance Manager]
    [Advanced Vision Electro Mechanical]
    [Jeddah]
    [Kingdom of Saudi Arabia ]
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    Original Message


  • 4.  RE: the Unused production Assets in plant

    Posted 02-21-2019 11:10 AM
    First determine whether particular production facility is impaired or not.  For this, you need to compare carrying value with the the value in use.  If carrying amount exceeds value in use, you.need to provide for impairment loss.

    Should you need further explanation, pl do not hesitate to ping me.

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    Siva Sai Hari Bhaskar Neti CMA,CPA,ACMA,CA,CFE,CGMA,CISA
    Director/Manager
    VISAKHAPATNAM
    India
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    Original Message