What is a Depreciation Report?

(March 04, 2014 , posted in Property Value)

By providing the strata corporation with a summary of current deficiencies, future projected capital expenditures, and costs for maintenance of each component Depreciation Reports help Strata Corporations, including bare-land strata corporations, plan for repair, maintenance and replacement of common property, limited common property and common assets over a 30 year period. As well, the depreciation report provides a financial plan for the strata corporation to prepare for these expenditures. The report is to be updated every three years and will be an integral part of the strata corporation's long-term planning.

The Report must contain;

-A physical inventory of the common property and assets

-Anticipated maintenance, repair and replacement costs for common expenses projected over 30 years

-A financial forecasting section with at least three cash flow funding models

Depreciation Reports are also known as reserve fund studies in other jurisdictions and have been a standard requirement in most Canadian provinces.