Does GAAP have a schedule of useful asset lives for book depreciation purposes?
Answers (4)
Marty M.
Certified Public Accountant
Best Answers in: Accounting (2), Organizational Development (1)
No. GAAP is different from tax. Each company estimates useful life of their assets. There is no specific guidance. GAAP only requires that you have an asset capitalization policy and follow it consistently.
Many companies use tax lives for GAAP lives, but then use straight line depreciation to calculate the depreciation expense.
Mark M.
Accounting & Finance Smokejumper, CPA (inactive)
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Your industry peer group should be able to give you a schedule of depreciation asset lives for book and tax, that you can start with and modify if your actual experience is different
They should also be able to provide a accounting policy manual, chart of accounts, et al that is more helpful than the generic "one size fits all"
I have given you the links for the SC association of CPAs, the Greenville chapter of the Instiute of Management Accountants, and a LinkedIn group that is for accounting and the restaurant industry.
http://www.sagefas.com/lp/SageFAS/BusinessSolutions/default.aspx?active_tab=1&prioritycode=PPCGO&WT.srch=1&srch=google
In addition Best FAS (Fixed Assets System) is a windows based accounting package that will allow you to keep ?7 different schedules per asset.(GAAP, Fed, State, Insurance, Personal Preoprty, et al)
The comment about the IRS only accepting straightline depreciation is incorrect.
The IRS allows DDB, ACRS, and other accelerated methods.
