Fixed Assets - CCA Classes

Pgm: FACCAMNT – CCA Class Maintenance; standard Treeview path: Fixed Assets > Setup > Local Tables > CCA Classes

The codes maintained on this screen are used in the annual report that provides capital cost allowance (CCA) amounts required for the preparation of income tax returns. They are not applicable to monthly depreciation. The values entered here are mandated by the tax laws but may change periodically.

The 'Half-Year Rule' checkbox is used to enable/disable the half-year rule for an asset class. The half-year rule controls how depreciation is calculated, however, it will only be applied if the depreciation method is Declining Balance/Yearly or Straight Line. This rule, if checked, will treat all property acquired during the year as being acquired exactly in the middle of the year. This means that only half of the full-year depreciation is allowed in the first year, while the remaining balance is deducted in the final year of the depreciation schedule, or the year that the property is sold.