Ask the Accounting Community

Dear colleagues,

During my study of part 4 i have encountered a new term of "lapsing schedules" relating to PP&E

thanks for any explanation

Rgrds

Michael karo

Hi,

 The lapsing schedules are the files that contain the fixed asset informtion. They project the anticipated depreciation based on cost, depreciation method, salvage value( if applicable) and the useful life. The schedules show what depreciation is expected to be booked. I believe they are used in conjunction with capital expebditure budgets and cash flow budgets (the depreciation is a non cash expense that has an associated tax benefit).

regards,

Dear scott,

thanks for your reply, any way i would like to know if this method of calculate the depriciation is recommended internally or no?

Rgrds

Hi Michael,

  It's not a depreciation method but rather a method to analize (forcast) the depreciation. It's a schedule that displays how the depreciation will be recognized over time once the method of depredciation has been established. It's an internal planning tool.

  Regards,  Scott

Dear scott,

thanks, i owe u.

rgrds

Michael