Introduction to Depreciation Depreciation charges are a way of spreading the cost of a capital/fixed asset over its useful life. When a company makes a purchase of an item that …
Under IFRS 16, the main items that will appear on the balance sheet are a “right of use asset” and a lease liability. However, it is also important to understand how to calculate the related interest payments for the lease at each payment interval as well as the depreciation amounts.