What is a depreciation report?
A depreciation report is a legislated planning requirement for strata corporations in British Columbia. Depreciation reports are used to establish long term planning for common property and common assets to determine:
1) What assets you own ( an inventory )
2) The asset condition ( evaluation )
3) When things need to be replaced ( the anticipated maintenance, repair and replacement )
4) How much money you currently have ( contingency reserve report )
5) What it is likely to cost for future replacement ( a description of the factors and assumptions in projecting costs)
6) How you are going to pay for the costs ( three cash flow models projecting 30 year replacement periods )
The regulations have set out requirements for time periods of the reports, qualifications of persons providing reports, schedules for updates, disclosure of reports, conditions of the reports and what information must be contained and financial planning and disclosure.
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