Skip to Content

Change of depreciation rate

Asset purchased in yr 2006, depreciation charged at the rate of 100% wrongly instead of 19%.

We have changed the depreciation rate to 19% and executed the recalculation of depreciation, but it is not calculating any depreciation. How do we calculate the depreciation retrosopective?

Thanx

Shivaji

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

1 Answer

  • author's profile photo Former Member
    Former Member
    Posted on Apr 22, 2008 at 05:29 AM

    Hello

    If the depreciation charged is 100% and if the year end closing is done, the asset would have zero balance in the next fiscal year 2007.

    Your requirement is to charge 19% in 2006 , 2007 and so on.

    No point reversing prior year asset value and costs. periods could have been closed or closing completed.

    You could possibily think of adjustments in current year only.

    You need to bring the new cost, show revenue, calculate dep etc.

    You have claimed higher depreciation in 2006, so reverse the whole and show as revenue.

    Create new asset and claim depreciation in current year plus additional depr for prior years ( choose the right dep key ) subsequently regularise and change dep keys for current req.

    Reg

    assign pts if useful

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.