Question

You are configuring depreciation areas in Asset Accounting. Which of the following settings is not permitted?

a) Different depreciation start dates
b) Different depreciation methods
c) Different useful lives
d) Identical asset classes

Answer 1

Different depreciation start dates, methods, and useful lives are generally permitted in depreciation areas, but having identical asset classes is not typically allowed as it defeats the purpose of unique asset classification for differing accounting standards.

Step-by-step explanation:

When configuring depreciation areas in Asset Accounting, it is generally permitted to have different depreciation start dates, different depreciation methods, and different useful lives. However, having identical asset classes for different depreciation areas is not typically permitted, as the purpose of defining multiple depreciation areas is to cater to different accounting principles or business needs that necessitate distinct asset classification. Each depreciation area may represent a different set of regulatory requirements or accounting standards, such as local GAAP, IFRS, or tax regulations, which would usually require different asset classifications.