CFA CFA Level 1 Depreciation of Long Lived assets

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Depreciation of Long Lived assets

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    • Avatar of Zee TanZee Tan
      Keymaster
        • CFA Charterholder
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        The definition of an asset’s cost is all costs that are necessary to get an asset in place and ready for use.

        So installation and transportation costs are part of the asset’s cost and used in depreciation.

        It also makes sense when you think about it – what is charged as installation, transportation and actual product costs can be quite arbitrary and vary depending on supplier.

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