we need to change the useful life of a capital lease asset due to a leasing contract extension. The respective asset was capitalized 2010-04-01 with a planned useful life of 6 years and 6 months until 1016-09-30.
We are using straight line depreciation (dep. key LINS). Resulting monthly depreciation amount was DEP_OLD = Acquisition value (APC) / 78 (6,5 years in months). DEP_OLD has been posted until 2013-09-30 --> 42 times
Now the leasing contract has been extended until 2021-09-30 --> The asset's usefule life therefore is 14 years and 6 months. If known from the begining the monthly depreciatin amount would have been APC / 174 (14.5 years in months) = DEP_NEW. We face the situation, that we posted to much depreciation in the past.
Accounting now wants the new useful life to take effect as of 2013-10-01. I would expect:
Thanks in advance for your support.