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Former Member
Aug 24, 2011 at 05:06 AM

Correct depreciation claculation after change in useful life of asset-.

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Hi,

Need help on one asset issue where there is change in useful life of asset.

Orginal useful life: 4 years

Expired useful life at 2011 FY start:1 yr 1 month

NBV as on P7/2011- 10000

Now business wants to reduce total useful life to 2 years 3 months.

And wants system to calculate depreciation on current NBV/remaining useful life without having any implication on prior periods.

This is not possible in SL method so I tried to change depreciation key.

But system is recalculating depreciation for P1 to P7/2011 and posting difference in P8/2011 resulting in very large depreciation amount for P8 which is not acceptable.

Smoothing option will also not work as I donu2019t want to considered prior periods depreciation at all.

How to achieve depreciation calculation as:

Current NBV/Remaining useful life

=10000/7 months

Urgent help required on this issue as we are nearing our P8 close and want to complete this before 28th.

Thanks