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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?



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


    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.


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