Hi!
I am having the following problem regarding depreciation of assets by components.
I have a Main Asset (M1), which costs 10,000.
Under M1, I have two components as follows:
C1: 6000, depreciation rate is 12 % p.a STL
C2: 4000, depreciation rate is 10% p.a STL.
Say I want to depreciate asset components separately, I have noticed that depreciation of asset components does not impact on the main asset.
Because I was thinking that when depreciating an asset component, the book value of the main asset is supposed to decrease by same amount of depreciation calculated on the asset component.
Can anyone please clear me on this issue?
Thanks in Advance.
Beatrice.