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Fusion Mobile - DEPRECIATION OF FIXED ASSETS | Nigeria’s Mobile e-Learning Platform
Meaning of Depreciation of Fixed Assets



Fixed assets which are of permanent nature and they create revenue for the business. They can last for a long period of time. Fixed assets of a business lose value or are said to depreciate with usage. Depreciation can be defined as a reduction in

DEPRECIATION OF FIXED ASSETS | Nigeria’s Mobile e-Learning Platform Meaning of Depreciation of Fixed Assets



Fixed assets which are of permanent nature and they create revenue for the business. They can last for a long period of time. Fixed assets of a business lose value or are said to depreciate with usage. Depreciation can be defined as a reduction in the economic service potential of an asset as a result of wears, tears, usage and passage of time. It can also be defined as the permanent or continuous decrease in the quantity, quality and value of an asset. The allocation of the cost of a fixed asset over its estimated useful life is a loss and must be taken into consideration when preparing the profit and loss accounts. When fixed assets are sold, the part of cost not recovered is termed depreciation.



REASONS FOR CHARGING DEPRECIATION

Since depreciation is a charge against profit, the tax to be paid on the profit by the firm will be reduced.
The amount charged as depreciation can be used for the replacement of the asset at the end of its useful life.
It follows the marching concept. The cost of assets are spread over its useful life.

Causes of Depreciation

Wear and tear: An asset may depreciate as a result of constant usage. Physical factors like erosion, dampness, rust and decay can cause an asset to reduce its value.
Obsolescence: An asset can become obsolete due to changes in technology. When this occurs, it is due for replacement. A very good example is the steam engine which was replaced by the diesel engine train.
Passage of time: Depreciation occurs in some assets with the effusion of time. E.g. Leaseholds, patents and copyrights.
Depletion: Some natural resources like gold, oil or tin deposits become worthless when the deposits have been depleted. They are called wasting assets. The more they are extracted, the less the reserve.
Inadequacy: As a result of expansion in the productive capacity of a company an asset may become too small or inadequate and thus required replacement for bigger ones.

Element of Depreciation

Original cost: This is the cost incurred in purchasing, installation and cost of carriage.
Estimated value: This is the scrap value. The amount which can be recovered when the asset is sold at the end of its useful life.
Estimated useful life: The expected number of years through which an asset can last.



Method of Depreciation

There are various methods of depreciating fixed assets. These are:

Straight line method – This method makes provision for equal amount to be charged as depreciation for each year of useful life of an asset. The depreciation is ascertained by dividing the cost of the asset less the residual value by the number of estimated useful life.
Diminishing or reducing balance method – By this method, a fixed percentage is written off the diminishing balance of the asset yearly. The total depreciation is spread over the anticipated useful life of the asset by annual installments of diminishing amount. This method of depreciation is advantageous because depreciation is more scientifically provided for. Here larger amount of depreciation is deemed to occur in the early years and smaller amounts in the later years.
Revaluation method – this method of depreciation is good for assets like loose tools (hammers, chisels, spanners), livestock, e.t.c. By this method, the asset is revalued each year, any difference will be charged as depreciation to the profit and loss account. The value of the assets at the beginning and end of the year must be known.
Sum of the year digit method – A decreasing depreciation is computed by a simple mathematical procedure relating to arithmetical progression. Each year of an asset’s life should be represented by a digit. Add these digits and charge fractions of the asset cost to the years in reverse order.

ACCOUNTING ENTRIES

There are two methods for preparing depreciation accounts. The methods are termed old and new methods.



Old method: Under this method, the amount charged as provision for depreciation is shown in the assets accounts. It is referred to as old method because it has fallen into disuse. The following accounts must be prepared under this method.

Assets accounts
Depreciation accounts
Profit and loss accounts
Balance sheet extract

The procedures are:

Debit the asset account with the cost of the asset.
Credit the asset account with the depreciation charge.
Debit the depreciation account with the depreciation charge.
Debit the profit and loss account with the depreciation charge.
Credit the depreciation account with the depreciation charge.

Modern method: Under this method, there will be a separate account called provision for depreciation account. The assets are always shown at cost price. Most firms are now using this method because it is most revealing. The following accounts must be prepared.

Asset account
Provision for depreciation account
Profit and loss account
Balance sheet extract

The procedures are:

Debit asset disposal accounts (Cost price of asset)

Credit asset account

Debit provision for depreciation account (Accumulated depreciation)

Credit asset disposal accounts

Debit cash book (Cash or cheque received on sale)

Credit asset disposal accounts

Debit asset disposal accounts (Profit on sale)

Credit profit and loss account

Debit profit and loss account (Loss on sale)

Credit asset disposal account

Fusion Mobile - Privacy Policy
MOBILE PRIVACY POLICY

MOBILE PRIVACY POLICY
PRIVACY POLICY MODEL FOR MOBILE APPLICATIONS

This privacy policy governs your use of the software application Fusion Mobile (“Application”) for
mobile devices that was created by Fusion Mobile Nigeria Limited. The Application is Fusion
Mobile is an educational platform built by Nigerians to provide "world-class education for Africa”.
This mobile

Privacy Policy MOBILE PRIVACY POLICY

MOBILE PRIVACY POLICY
PRIVACY POLICY MODEL FOR MOBILE APPLICATIONS

This privacy policy governs your use of the software application Fusion Mobile (“Application”) for
mobile devices that was created by Fusion Mobile Nigeria Limited. The Application is Fusion
Mobile is an educational platform built by Nigerians to provide "world-class education for Africa”.
This mobile App features thousands of educational resources, including: A personalized learning
dashboard Over 100,000 practice problems from JAMB, WAEC, GCE and Aptitude Test, Over
2,000 micro lectures via video tutorials in the app teaching Mathematics, Use of English, Physics,
Chemistry, Commerce, Biology, Government, Financial Accounting, Economics, Geography and
Literature in English. A personalized learning engine to help students track what they have learned
and recommend what they can do next. Progress reports via SMS Automated exercises and remote
examinations with continuous assessments. Self-paced, provides consistent content, fast and works
anywhere and anytime for the learners. Private tutorials for all users
What information does the Application obtain and how is it used?
User Provided Information
The Application obtains the information you provide when you download and register the
Application. Registration with us is optional. However, please keep in mind that you may not be
able to use some of the features offered by the Application unless you register with us.
When you register with us and use the Application, you generally provide (a) your name, email
address, age, user name, password and other registration information; (b) transaction-related
information, such as when you make purchases, respond to any offers, or download or use
applications from us; (c) information you provide us when you contact us for help; (d) credit card
information for purchase and use of the Application, and; (e) information you enter into our system
when using the Application, such as contact information and project management information.
We may also use the information you provided us to contact your from time to time to provide
you with important information, required notices and marketing promotions.
Automatically Collected Information
In addition, the Application may collect certain information automatically, including, but not
limited to, the type of mobile device you use, your mobile devices unique device ID, the IP
address of your mobile device, your mobile operating system, the type of mobile Internet browsers
you use, and information about the way you use the Application.
Does the Application collect precise real time location information of the device?
This Application does not collect precise information about the location of your mobile device.
Do third parties see and/or have access to information obtained by the
Application?
Only aggregated, anonymized data is periodically transmitted to external services to help us
improve the Application and our service. We will share your information with third parties only in
the ways that are described in this privacy statement.
We may disclose User Provided and Automatically Collected Information:
as required by law, such as to comply with a subpoena, or similar legal process;
when we believe in good faith that disclosure is necessary to protect our rights, protect your safety or the safety of others, investigate
fraud, or respond to a government request;
with our trusted services providers who work on our behalf, do not have an independent use of the information we disclose to them,
and have agreed to adhere to the rules set forth in this privacy statement.
if Fusion Mobile Nigeria Limited is involved in a merger, acquisition, or sale of all or a portion of its assets, you will be
notified via email and/or a prominent notice on our Web site of any change in ownership or uses of this information, as well as any
choices you may have regarding this information.
What are my opt-out rights?
You can stop all collection of information by the Application easily by uninstalling the Application.
You may use the standard uninstall processes as may be available as part of your mobile device or
via the mobile application marketplace or network. You can also request to opt-out via email, at
[email protected].
Data Retention Policy, Managing Your Information
We will retain User Provided data for as long as you use the Application and for a reasonable time
thereafter. We will retain Automatically Collected information for up to 24 months and thereafter
may store it in aggregate. If you’d like us to delete User Provided Data that you have provided via
the Application, please contact us at [email protected] we will respond in a
reasonable time. Please note that some or all of the User Provided Data may be required in order
for the Application to function properly.
Children
We do not use the Application to knowingly solicit data from or market to children under the age
of 13. If a parent or guardian becomes aware that his or her child has provided us with information
without their consent, he or she should contact us at [email protected]. We will delete
such information from our files within a reasonable time.
Security
We are concerned about safeguarding the confidentiality of your information. We provide physical,
electronic, and procedural safeguards to protect information we process and maintain. For example,
we limit access to this information to authorized employees and contractors who need to know that
information in order to operate, develop or improve our Application. Please be aware that,
although we endeavor provide reasonable security for information we process and maintain, no
security system can prevent all potential security breaches.
Changes
This Privacy Policy may be updated from time to time for any reason. We will notify you of any
changes to our Privacy Policy by posting the new Privacy Policy www.myfusionmobile.com and
informing you via email or text message. You are advised to consult this Privacy Policy regularly
for any changes, as continued use is deemed approval of all changes. You can check the history of
this policy by clicking here.
Your Consent
By using the Application, you are consenting to our processing of your information as set forth in
this Privacy Policy now and as amended by us. "Processing,” means using cookies on a
computer/hand held device or using or touching information in any way, including, but not
limited to, collecting, storing, deleting, using, combining and disclosing information, all of which
activities will take place in the United States. If you reside outside the United States your
information will be transferred, processed and stored there under United States privacy standards.
Contact us
If you have any questions regarding privacy while using the Application, or have questions about
our practices, please contact us via email at [email protected].