Assets & GRAP
Depreciation by Asset Class
Annual depreciation charge allocated across asset classes.
Why Depreciation Allocation Matters
Depreciation is how the cost of an asset is matched to the periods it serves, and getting it right is central to a fair view of both the surplus or deficit and the carrying value of assets. Under GRAP 17, depreciation must reflect each asset's useful life and the pattern in which its benefits are consumed, so a poorly maintained register produces a depreciation charge the AGSA will challenge. AuditPro Core allocates the annual depreciation charge across asset classes so the expense is transparent, consistent and defensible.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Annual Depreciation
R 642 m
▲ 5% YoY
Largest Charge
Infrastructure
R 388 m
Useful Life Reviews
12
this cycle
Fully Depreciated
R 184 m
still in use
Depreciation Charge by Class (R m)
Depreciation Detail
| Asset Class | Cost (R m) | Charge (R m) | Avg Rate % |
|---|---|---|---|
| Infrastructure | 7760 | 388 | 5.0% |
| Buildings | 3200 | 96 | 3.0% |
| Plant & Equipment | 780 | 78 | 10.0% |
| Vehicles | 320 | 48 | 15.0% |
| Furniture & Office | 220 | 22 | 10.0% |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Useful life and method
Depreciation spreads an asset's depreciable amount over its estimated useful life using a method that reflects benefit consumption, usually straight line. Unrealistic useful lives distort both the annual charge and the closing carrying value.
Componentisation effect
Because significant components have their own lives, depreciation must be computed component by component for major assets. Class-level allocation built on componentised data is materially more accurate than whole-asset estimates.
Review of estimates
Useful lives and residual values must be reviewed at least annually under GRAP. Stale estimates carried unchanged for years are a common source of misstated depreciation.
How AuditPro Core Bridges the Gap
- Reconciliation: the depreciation charge per class reconciles to the movement in accumulated depreciation in the ledger.
- Continuous monitoring: the charge is recomputed as additions, disposals and life revisions occur, keeping the expense current through the year.
- Exception workflow: assets fully depreciated yet still in use, or with implausible lives, are flagged for estimate review.
- Audit-ready export: the depreciation analysis by class exports for the PPE note and the auditor's recalculation testing.
Key Takeaways
- Useful lives drive the charge; unrealistic lives distort surplus and carrying value.
- Componentised depreciation is materially more accurate for large assets.
- Review useful lives and residuals at least annually as GRAP requires.
- Fully depreciated assets still in use signal lives set too short.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.