Depreciation at the cost of purchase

Question

Can we depreciate an asset at its purchased cost even if there is a disposal value? What are the IFRS rules in this regard?

Answer 1

As per IAS 16.50, cost less residual value should be allocated on a systematic basis over the asset's useful life. However if you consider the residual values to be immaterial then yo can use the cost only. This is up to the management to decide.