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This policy outlines the Fixed Asset management and depreciation procedures for Kings Academy Schools Trust, ensuring accurate reflection of assets and liabilities within the Trust\'s balance sheet. It details definitions, asset categorization, depreciation methods, asset disposal procedures, and compliance with relevant standards.

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What is fixed asset and depreciation?

A fixed asset is a long-term tangible piece of property or equipment that a business owns and uses in its operations to generate income. Depreciation is the accounting method used to allocate the cost of a fixed asset over its useful life.

Who is required to file fixed asset and depreciation?

Businesses that own fixed assets and are subject to tax laws often need to file fixed asset and depreciation schedules as part of their financial statements or tax returns.

How to fill out fixed asset and depreciation?

To fill out fixed asset and depreciation forms, list all fixed assets owned, including their purchase price, acquisition date, and estimated useful life. Calculate the depreciation expense using an appropriate method (e.g., straight-line or declining balance) and report this information on the relevant tax forms.

What is the purpose of fixed asset and depreciation?

The purpose of fixed asset and depreciation accounting is to accurately reflect the value of a company's assets, report their consumption over time, and match expenses with the revenues generated by those assets.

What information must be reported on fixed asset and depreciation?

The information reported on fixed asset and depreciation includes asset details such as acquisition cost, acquisition date, useful life, method of depreciation used, accumulated depreciation, and book value of each asset.

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