Forum Discussion

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 pre...
  • 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

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