This report provides an analysis of depreciation of Plant, Property, and Equipment (PPE) in relation to Australian Accounting Standards Board (AASB) 116, focusing on a case study involving Sea Eagle Ltd. It discusses the standards for recognizing lease amounts and the treatment of depreciation during idle periods of assets. The report addresses the impact of a strike at Sea Eagle Ltd. on its plants and the subsequent implications for PPE depreciation under AASB 116. An analysis is conducted from the perspective of an auditing team member, examining factors that influence the depreciation process, including the asset's useful life, wear and tear, and obsolescence. The report concludes that depreciation should be charged even during idle periods, unless the asset is fully depreciated, and emphasizes the importance of considering events like strikes in assessing the asset's estimated useful life and depreciation method.