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Is it possible to apply different methods of amortization to fixed assets, for instance ; I use straight line method for a machine in production line, can I use double declining method for a new machine which is very similar functioning comparing to other machine that I applied straight line method?
in IAS 16 - Property, Plant and Equipment by

2 Answers

0 votes
Are you talking about amortization or depreciation? We "Depreciate" tangible fixed assets while we "Amortize" intangible assets. As I understand your question what you in fact mean is depreciation.

Refer IAS 16.60 which says "the depreciation method used shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity." Therefore the way you propose in your example is likely to be against the standard.
by Level 2 Member (2.6k points)
0 votes
I was talking about depreciation , that s my mistake ; but you could be able to understand while I was saying "a machine in production line" that I was speaking about depreciation, anyway.

Question is clear; there are methods of Depr&Amrt called ;
* Straight-line
* Double declining
*Product unit

My question , can I change method in my different machines, your answer is not covering the question, thanks anyway.
by
Strictly speaking, If two different assets have the same pattern of future economic benefits that are expected to be consumed by the entity, you should have the same depreciation method.

If you mean changing existing depreciation method you need to follows IAS 8.


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