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sziguras's avatar
sziguras
User
5 months ago
Solved

recording a fixed asset

I am Treasurer and do the books for a non-profit Co-Operative. Last year we spent some money (around $6500) upgrading the electrical cabling in our factory. That was recorded as an Expense by the previous Treasurer. Our Auditor has since said it should have been recorded as an addition to our fixed assets but he is not able to advise how to do that.

 

I've tried to find articles on MYOB about how to do this but most just say to talk to an accountant. Can anyone advise me how I can record this spending as a fixed asset? Should I also delete it as an expense transaction (the auditor didn't include it in our list of expenses)?


I'm a bit confused about how to manage all of this, any advice most appreciated.

  • Princess_R's avatar
    Princess_R
    5 months ago

    Hi sziguras,

     

    Thank you for your post, and welcome to the Community forum.

     

    In this matter, it is advisable to seek guidance from your accountant to ensure adherence to accounting standards and regulations. We can offer assistance in navigating the process of upgrading the electrical cabling as a fixed asset. Typically, you would need to establish a new fixed asset specifically for the electrical cabling upgrade. Since we're not an accountant, we're unable to provide specific advice on this matter, if there are any adjustments needed for the previous expense entry , it is strongly recommended to consult with your accountant for tailored guidance in this situation.

     

    If there's anything else we can assist you with, please feel free to reach out.

     

    Cheers,

    Princess

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  • DuncanS's avatar
    DuncanS
    Ultimate Partner
    4 months ago

    sziguras Princess_R 

     

    There is an ongoing saga between Repairs and Improvements - have a read of the ATO website.

     

    I do not know why the Auditor has deemed the Cabling to be an Improvement not an Expense.

    Nor why the Auditor could not assist with the required Accounting Entries.,

     

    Sometimes we have to do what we are told.

     

    Create a Non-Current Asset called Improvements to Cabling  Include a month and year.

     

    The issue then is the useful life of the Improvement to Cabling.

    I suggest Monthly/Annual Journals for the Depreciation would be required.

     

    Duncan

    • Doreen_P's avatar
      Doreen_P
      MYOB Moderator
      4 months ago

      Hi, DuncanS

       

      Thank you for this additional information. We truly appreciate your support for the Community Forum. 

       

      Best regards,

      Doreen

  • Princess_R's avatar
    Princess_R
    MYOB Moderator
    5 months ago

    Hi sziguras,

     

    Thank you for your post, and welcome to the Community forum.

     

    In this matter, it is advisable to seek guidance from your accountant to ensure adherence to accounting standards and regulations. We can offer assistance in navigating the process of upgrading the electrical cabling as a fixed asset. Typically, you would need to establish a new fixed asset specifically for the electrical cabling upgrade. Since we're not an accountant, we're unable to provide specific advice on this matter, if there are any adjustments needed for the previous expense entry , it is strongly recommended to consult with your accountant for tailored guidance in this situation.

     

    If there's anything else we can assist you with, please feel free to reach out.

     

    Cheers,

    Princess