Fixed Assets on Balance Sheet

Our church has fixed assets on the Balance Sheet with no depreciation being booked.

I have been told churches need not depreciate fixed assets; just as they are replaced, the Fund Balance is reduced by the amount of the original asset and increased by the amount of the newly purchased asset.

Is this the correct way to handle fixed assets?

Comments for Fixed Assets on Balance Sheet

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Old Building Purchase
by: Anonymous

My church bought its building 15-20 years ago. The asset was never recorded on the balance sheet. Is it possible to add it to the balance all these years later? If so, what is the entry I need to make?
Fixed Assets on Balance Sheet
by: Lewis in NC

This would be very reasonable as a way to handle fixed assets for a church, a nonprofit organization.

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