Can the adjust useful life be effective as of current period, which only impact future depreciation?
Summary:
Can the adjust useful life be effective as of current period, which only impact future depreciation?
Content (please ensure you mask any confidential information):
Our accounting standard allow to choose the effective date when adjust useful life, previous depreciation should not be impacted, only future depreciation will be impacted.
For example,
asset cost: 3600
useful life: 36 period
remaining useful life: 20 period
monthly depreciation (Straight line) : 100
depreciation reserve: 100*16 = 1600
NBV: 3600-1600=2000
Adjust useful life from 36 to 60 period, the expected depreciation calculation is using NBV/remaining useful life,
NBV: 2000
remaining useful life: 60-16 = 44
monthly depreciation after adjustment in current period: 2000/44 = 45.45
Please advise if system can support this. Thanks.