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Jun 11, 2020 at 11:15 AM

Asset Acquisition Cost Reduction

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Hi All,

Our Client asked a question, An asset is bought in January and a wrong acquisition cost was posted then,So now we in June and they wonder if the amount be reduced In January and calculate depreciation correctly?

My answer was no since postings were made they can only do a Write down and the the correct depreciation will calculate from the new reduced amount going forward.

What is your view? and what would be the workaround?