How to depreciate carrying amount in balance useful life of asset

[Former Member]

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?.

[Former Member]

Hello,

From the screenshot and your description, I think for existing asset it needs to be depreciated to scrap value(2350) when useful life is used up, isn't it? seems the depreciation key is a daily based key, to know why it's calculating like this, it'll help a lot if depreciation key setting(t-cd: AFAMA, AFAMS, AFAMP etc.) can also be provided.

Best regards,
Hannah

[Former Member]

Thanks for reply

You understood me rightly

my main question is that if we have an asset on which any WDV dep key is being used, assuming life of 9 years and now we have been told to reduce the life to 3 years. Now we have to depreciate the same asset using a WDV dep key for rest of life that is 1 year and 117 days ( 1 year and 248 days already passed).

SO will we have to create a new WDV dep key with such a dep rate that will dep the carrying amount on 01.04.2014 to such a amount that 5% scrap is left (2350 in my example) ?

Secondly if we have such 2000 assets with diff dep keys, we will have to make as many dep keys for these assets ( assuming each asset purchased on diff date)

thirdly such newly created dep keys would not be usable for newly created asset from 01/04/2014..