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Jul 24, 2014 at 05:20 AM

Depreciation on the basis of estimated revenue


Hello Experts

I have requirement where depreciation should be calculated on the basis of estimated revenue.

I have one intangible assets. We have estimated some revenue out of that asset, over 5 years.

For Ex:

1st Year: Rs.100

2nd Year: Rs. 70

3rd Year: Rs. 55

4th Year: Rs.33

5th Year: Rs.24

Now I want to depreciate my asset (of Rs. 10 Lakhs) on above proportionate. Please note the estimation may change in between. For ex:

In 3rd year, revenue estimation changes to:

3rd Year: Rs. 52

4th Year: Rs.35

5th Year: Rs.18

Please let me know, how can I achieve this.