## Depreciation Period — When Does It Start and End?
Depreciation on a PPE item runs from its commencement date to its cessation date.
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### Commencement (Start Date)
Depreciation begins when the asset is available for use — meaning it is in the location and condition necessary to operate as management intends.
> Key Distinction: "Available for use" ≠ "Actually put into use"
| Event | Date |
|---|---|
| Construction started | 01-Apr-2025 |
| Asset available for use | 01-Nov-2025 ← Depreciation starts here |
| Company actually starts using it | 01-Feb-2026 |
Even though the company physically starts using the asset in February 2026, depreciation must begin from 01-Nov-2025.
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### Cessation (End Date)
Depreciation stops when either of the following occurs:
1. The useful life of the asset is exhausted
2. The asset is disposed of / sold
#### Special Rule — Residual Value Floor
If the Carrying Amount (CA) reaches the Residual Value, depreciation must stop — even if the useful life has not expired.
> Do not depreciate an asset below its residual value.