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Former Member
Jul 09, 2014 at 11:51 AM

How to depreciate carrying amount in balance useful life of asset

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According to new act for depreciation we have to depreciate existing asset with changed parameters - "carrying amount of the asset shall be depreciated over remaining useful life of asset."

So if we create a new DEP key with wdv rates to depreciate assets ( hardware ) in 3 years , its working fine but if we apply same dep key to any existing assets results totally differ.

Two screen shots one is newly created Asset and second is existing asset.

In existing asset we applied newly created dep. key with same rates as used in newly created asset. When used for existing asset result were wrong.

We had given system scrap value as shown in screen shot

new asset scrap value

But as we can see final figure in second screenshot is 6037.77 and not 2350.

SO what i want to confirm is that for each existing asset we will have create as many dep keys as we have assets so that assets are maintained as per schedule 2 company act.

or there is some way around so that existing asset's wdv rates are changed using a newly created dep key and that same key is useful for newly created block of assets?.

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