It seems many folk are confused by the R7k thing. To clarify somewhat; it is an income tax concession and refers to wear and tear, not depreciation. For example:
Assume the accounting policy makes no mention of a threshold amount. The company buys a widget for R5000.00 The widget is depreciated over 5 years.
Financial:
In year 1 the company charges R1000 to depreciation in the income statement.
Taxation:
In year 1 the company charges R5000 to wear and tear in the taxation income statement
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