To all the above users:

...What you do for Financial Accounting purposes and what you do for Taxation purposes are two different things.

The tax value of an asset is recognized when it is or exceeds R7000.00
The value of an asset for financial accounting purposes may be R6999.00 or less or more (As long as it meets the definition and recognition criteria of an asset in terms of the relevant International Accounting Standard.)

Wear-and-tear rates(SARS) and Depreciation(Your business's accounting policy) are rarely exactly the same rate. EXAMPLE: In most cases a business will provide for depreciation over 5 years on a particular asset(thus 20% of cost price of asset in year one) While SARS will let you deduct the full amount of the asset in the year of purchase for tax purposes (thus 100% of cost of asset in year one)

The calculations in your tax return and your income statement won't always agree for the above reason and this is normal. The tax man does not determine what you as an entity classifies as an asset and what is not, Accounting Standards do.

Differences between accounting treatment and taxation treatment of transactions are usually reflected in you financial record as either a "Deferred tax asset" or "Deferred tax liability" (Tax payable per income statement vs. Tax payable per tax Return)

If you have any further doubts on the above matter, please reply :]