Depreciation

 

(1) All depreciable assets recorded in the assets register must be depreciated using the “straight line method” over their estimated useful lives.  The estimated useful lives must be -

(a)          appropriate for the type, use and location of the assets;

(b)          specified in the Finance Manual for the agency; and

(c)           within the following ranges –

 

Asset Class                                          Estimated Useful Life

(i)                 Buildings                                               40-60 years

(ii)               Infrastructure assets                             20-100 years

(iii)             Vehicles                                       5-15 years

(iv)             Computer software                                3-15 years

(v)               Computer hardware                              4-10 years

(vi)             Other plant and equipment                  5-20 years

(vii)           Other intangible assets                          3-20 years

 

(Finance Instructions 2005 s(58))