FBiH Depreciation
Fixed assets are depreciated over the useful life of the assets. Effective 16 January 2020, depreciable fixed assets also include leased assets in accordance with International Financial Reporting Standards (IFRS) 16. The assets are depreciated using a straight-line method at the following rates as prescribed by the FBiH government:
| Buildings | 5% |
| Roads, communal objects, and upper rails machines | 10% |
| Equipment, vehicles, and facilities | 15% |
| Equipment for water management, water supply, and canalization | 15% |
| Crops | 15% |
| Hardware, software and equipment for environmental protection | 33.3% |
| Live-stock units | 40% |
| Intangible non-current assets | 20% |
Fixed assets with a value of less than BAM 1,000 can be fully depreciated in the year of purchase, provided the asset was used in the same year. Devaluation expense on fixed assets (the difference between current net value and the estimated retrievable value) is tax deductible in the period when the assets are sold or destroyed by force majeure.
RS Depreciation
Assets that are owned or acquired through financial lease and put to use are depreciated. Tangible and intangible assets (except goodwill and land) with a useful life longer than 12 months are considered as depreciable.
Assets are depreciated using the straight-line method of depreciation, except machines and equipment, which are eligible for accelerated depreciation, i.e., 1st year at 40% and 2nd and 3rd year at 30%. Annual depreciation rates range from 1% to 50%, depending on the type of assets.
BD Depreciation
Assets that are owned or acquired through financial lease and put to use are depreciated. Tangible and intangible assets (except goodwill and land) with a useful life longer than 12 months are considered as depreciable.
Assets are depreciated using the straight-line method of depreciation, except machines and equipment, which are eligible for accelerated depreciation i.e., 1st year at 40% and 2nd and 3rd year at 30%. Depreciation for newly purchased property starts from the following month of the day when it was put to use. Depreciation for newly constructed buildings starts from the first day of the following year in which it was put to use.