The second post in our depreciation reporting series will cover the elements of a depreciation roll forward report. This depreciation report displays the opening balance and then the asset activity during the reporting period. This means all the numbers are fluid and the report is read from left to right. Below is a picture of what such a report will look like. (For a clearer viewing, please click the image so that it opens full size in a new window)
The columns of this report should include:
- Unique asset identifier and optionally description
- Date placed in service – the date when depreciation begins
- Depreciation method – determines the calculation technique used
- Associated recovery periods – the estimated life in years and months
- Opening depreciable basis – sometimes referred to as cost or purchase price
- Additions – new assets acquired during the reporting period(s)
- Disposals – dispositions during the reporting period(s)
- Adjusted Basis – opening basis plus additions minus disposals
- Prior – amount of depreciation calculated from the service date through the previous accounting period
- Current – amount of depreciation in the current accounting period or periods
- Total – sum of prior and current numbers
A “roll forward” report is a valuable tool to view the monthly asset activity of your internal book schedule. It shows your opening balance at the start of the accounting period, monthly transaction and then the closing monthly numbers. This report can also be run against the tax schedule to show asset activity for an entire calendar year.
If you need any help understanding these reports, please feel free to share any questions that you may have. You may do so either below in the comments section, or on the questions page.
More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.