12 factors to consider when accurately determining life expectancy of assets and elements:
Industry Lifecycle Guidelines
The Chartered Institute of Building Services Engineers (CIBSE) for example, produce median benchmark life cycles for building services assets. These are useful for cross checking – often a good starting point/guide or where no real data is available. Often used for cheap* ‘desk-top’ exercises. Other examples include ATO TR 2014/4 – Income tax: effective life of depreciating assets and The American Standard – Building Component Useful Life.
*Cheap is expensive.
A qualified engineer must be used to determine life expectancy outside the accepted ATO benchmarks (this is called ‘self assessment’).
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