Expand the asset life time and avoid the adjustment entry
I have increase the lifetime of existing assets and when increase the life time of assets it will generates a minus depreciation figure (Profit) as an adjustment entry.
Our organization calculates depreciation on daily basis (Cost-Salvage value) / days per year.
My requirements are
1. Need to increase asset lifetime of existing assets
2. The effect of increasing the asset life time, should not effect to previously calculated depreciation amounts
3. Want to avoid the adjustment entry ( because it generates a profit figure, which actually not a profit)
4. Future depreciation should be calculated according to the expanded asset life
Regards
Chathura