Why is plant and equipment itemised?
The ATO specifies an individual effective life for all plant and equipment items. Our reports consequently show the estimated cost for each item and its contribution to the depreciation total per financial year. The original building structure and capital improvements, or Division 43, are all depreciated at the same effective life rate, consequently individual costs for these items aren’t expressed in the report. If required by the ATO, the estimates for division 43 can be justified.
