Tier 3 – Depreciation – Buildings

The Tier 3 PBE reporting standard (PBE SFR-A (NFP))has provisions for depreciation on what is commonly known as property, plant and equipment. There is also an Explanatory Guide A5 (EG A5) that includes some helpful information relating to how to complete the optional template for Tier 3 reporting entities.

The attached document includes an explanation on the components of depreciation that relate to buildings using the cost method and determines that depreciation for buildings with long useful lives may need to be 0%.

If you need any further assistance, please let Peter van Hout know.

Depreciation for Tier 3 Using the Cost Model June 2017