A machine paid for today may serve several accounting years. Depreciation allocates its depreciable amount over forecast useful life under a plan. It measures accounting consumption of the asset; it is neither supplier repayment nor a tax life copied from a table.
Five plan decisions
- Identify asset and entry into use.
- Determine entry cost.
- Estimate residual value.
- Estimate enterprise-specific useful life.
- Choose a method reflecting consumption.
- Calculate and support each charge.
- Review the plan if circumstances change.
1. Determine depreciable amount
Acquisition cost includes price and costs directly needed to prepare the asset for use under the CGNC, after reductions and recoverable taxes. Depreciable amount is entry value less estimated residual value.
| Element | Question |
|---|---|
| Price | invoice and reduction? |
| Transport/installation | necessary to prepare for use? |
| VAT | recoverable or included under treatment? |
| Residual value | expected at end, net of costs? |
| Components | materially different lives to analyse? |
Maintenance keeping an asset working is not automatically a new fixed asset. Classify its nature.
2. Choose an economic, not decorative, life
The CGNC ties forecast life to enterprise use, including physical and economic factors such as wear and obsolescence. Similar equipment can differ with load, maintenance and technology.
- Describe intended use and service date.
- Consult documentation and experience.
- Estimate wear, obsolescence and constraints.
- Compare policy for similar assets.
- Approve life and method.
- Retain the judgement note.
- Reassess at closing when indicators appear.
A round life chosen to reduce profit without analysis is not defensible.
3. Calculate a straight-line example
Equipment used for a full year: cost MAD 24,000, estimated residual nil, life four years. Depreciable amount 24,000; illustrative annual straight-line charge MAD 6,000.
| Year | Charge | Accumulated | Net value |
|---|---|---|---|
| 1 | 6,000 | 6,000 | 18,000 |
| 2 | 6,000 | 12,000 | 12,000 |
| 3 | 6,000 | 18,000 | 6,000 |
| 4 | 6,000 | 24,000 | 0 |
If service starts midyear, residual is nonzero or another method reflects use better, calculation changes. This is not a tax rate.
Accounting life is not automatically tax life
CGNC and CGI serve different objectives. Keep a defensible accounting plan and separate schedule of validated tax adjustments.
4. Post, review and separate tax
The charge debits depreciation expense and credits accumulated depreciation; it reduces result without payment on that date. CGNC requires consistency and justified plan revision is explained in ETIC with its influence.
- Accounting: useful life and fair presentation
- Tax: deductibility, rate and CGI conditions
- Difference: add-back or specific treatment where applicable
- Impairment: separate value decline to analyse
- Disposal: stop depreciation and record exit correctly
Since 3.0, BelloPOS Pro keeps a fixed-asset register: straight-line or declining plans, the depreciation charge and a disposal register, with the invoice and in-service date attached. Useful life, residual value and tax treatment stay your decisions with your accountant — it applies the plan you approve, it does not choose it.
Mistakes to avoid
- Depreciating an ordinary expense.
- Starting at order rather than use.
- Copying life without analysis.
- Forgetting residual value.
- Continuing after disposal.
- Calling charge a payment.
Frequently asked questions
What is depreciable amount?
Entry value less estimated residual value.
When does depreciation start?
The plan follows use/entry into service; validate exact cut-off.
How is useful life selected?
From forecast use, wear, obsolescence, maintenance and suitable evidence.
Can the plan change?
New circumstances may justify revision, documented and explained in ETIC.
Does BelloPOS calculate depreciation?
Since 3.0, Pro computes straight-line or declining charges and keeps the disposal register. It applies the plan you enter: useful life, residual value and deductibility remain judgements to validate.
What to take away
Credible depreciation starts from the real asset and its use, not a desired rate. Document cost, residual, life, method, service date and tax separation.
Sources
The figures and rules quoted above come from these pages, read on the date given in the article.
- Ministry of Economy and Finance, General Code of Accounting Standardisation, read 1 September 2026
- Moroccan Tax Administration, 2026 General Tax Code
Retain evidence for point-of-sale equipment
Archive invoice, service date and assignment, then have the professional establish the plan.
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