Depreciation is not appearing on the Operating Profit/Loss note
Article ID
ias-1503
Article Name
Depreciation is not appearing on the Operating Profit/Loss note
Created Date
26th May 2004
Problem
I have posted to Depreciation within the Profit and Loss Account but the figures are not being shown on the Operating Profit/Loss note under the following: Depreciation - owned assets Depreciation - assets on hire purchase contracts and finance leases
Resolution
The Depreciation shown on the Operating Profit note is picked up from the Balance Sheet posting and not the Profit and Loss Account posting.
Make sure the double entry to the posting made to Depreciation on the Profit and Loss Account has been made to ‘Charge for the Year’ on the Asset account on the Balance Sheet.
e.g. Profit and Loss Account = 390/12 dr
Balance Sheet = 523/22 cr
Note: Accounts shown above are taken from the ELTD chart.
If further information is required please contact IRIS Support.
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