Depreciation on the Balance sheet

[George_H]

Hi Glen,
I am used to seeing the net assets (cost less depreciation) in the balance sheets Asset section, however quickfile shows the gross assets and depreciation in the Liabilities section.
The same goes for Amortisation.

I have not come across this way of showing depreciation and amortisation in the balance sheets liabilities section, why is it done this way?

[Glenn]

I’m not an accountant so I would need to refer this to my colleague.

In general any nominal account between 1-2999 (assets and liabilities) will show as an asset if in debit and a liability if in credit. I’m not sure of any special rules that are applied to the depreciation codes?

If you don’t mind I will send you a PM to get some more info on your account.

EDIT:

My colleague referred me to the following posts:

http://community.quickfile.co.uk/t/is-accumulated-depreciation-a-liability/1681

http://community.quickfile.co.uk/t/presentation-of-depreciation-in-balance-sheet/767

[George_H]

I see others have reported this error a year ago, and that its due to be fixed, so in the mean time @Joe suggests doing a journal but that would effect the assets cost price total and the accumulated depreciation total which are required for annual statutory asset reporting.
If its has not been changed when my EOY comes, I’ll just export the balance sheet data csv and edit it to move the depreciation & amortisation into the assets then re-total each section, a 15 minute job.

[Glenn]

We’ve just released an update to the balance sheet that will now factor in any depreciation and reflect the net book value on certain asset codes.

I’ve provided a fuller response here with an example: Presentation of depreciation in balance sheet

Please do get back to me with any feedback you may have.

[George_H]

Hi Glen,
That works for me, thanks
I think the presentation of depreciation in balance sheet needs a correction as it states:

When opening the balance sheet if any balance is discovered on 0020, 0030, 0040, 0050 0100 or 0110 the following option will appear allowing you to display as a net book value.

I noticed that the net option does not appear when those codes have a balance, it only appears when there’s a balance on one of the depreciation or amortisation codes which are 0021, 0031, 0041, 0051 0101 or 0111.

[Glenn]

OK thank you for letting me know about this, I will just confirm with the devs and get that updated ASAP.

[xloganm15]

Completely agree with the presentation change. Depreciation on its own merit is not a liability but cr net of an asset. Good change guys.

[charlotte.v]

Has this been fixed yet - as it is still showing in liabilities in the balance sheet report I have just ran?

[QFMathew]

Hi @charlotte.v

We’re not aware of any issues relating to this area. Are you able to reply with the URL for the bug report, and I’ll ask our dev team about this?

[charlotte.v]

This has been asked before … Depreciation on the Balance sheet

[QFMathew]

As per the thread you linked to, there were changes made and implemented in December 2014/January 2015. This introduced a ‘net value’ tick box which reduced the value of an asset rather than showing the depreciation separately.

[jamespbmatt]

I have been a chartered accountant for many years and I have never seen depreciation displayed in Current Liabilities as it is in the default balance sheet report. Where does this come from? Am I behind with my IFRS training?

The alternative of seeing the Net Book Value is much better but not ideal. I would much rather see

Fixed Asset
(Accumulated Depreciation)

Net Book Value

[Glenn]

@jamespbmatt I’ve merged your post to the existing feature thread regarding the presentation of depreciation on the balance sheet. It will get more visibility here and it keeps related discussions in one place.

We can certainly consider further changes, it’s always better if we can get consensus on this from other users before we make any coding changes.

[lyndac]

I don’t have a tickbox to show net book value on my balance sheet. Any ideas?
My balances for capital equipment and depreciation are in 022 and 023

[QFMathew]

Hello @lyndac

I believe since the last post here (April 2016), this was moved to show under the account that the equipment was tagged to. There’s more on this update here:

Depreciation STILL being classified as current liability (RESOLVED)

Hello @jamespbmatt2 We have just released an update to the balance sheet to provide a clearer breakdown of any depreciation. We have removed the “Show NET book value” checkbox and defaulted to always show a 3 line breakdown of the asset value, less depreciation and a final net book value. [image] We would be grateful if you would take a look and share any thoughts you have.

If you’re not seeing this, double check that everything is in the correct nominal codes and everything ties up (e.g. if it’s equipment, you’re also using the correct equipment nominal, etc.)