Adjustment to both Asset Cost and Useful Life and including catch-up depreciation in current period
Hi,
My client has received a late invoice for costs that should have been included as part of an asset purchase/capitalisation created 3months prior to the current period. In addition, the life applied to the original asset on creation was incorrect and requires amendment.
Can you please advise on the correct actions required for;
1. reflecting the adjustment to the cost (increase Current cost to include the additional invoice value?)
2. amending the useful life of the entire asset (I presume this should be a case of entering the corrected life based on DPIS? and not based on the adjustment date?).
My client has received a late invoice for costs that should have been included as part of an asset purchase/capitalisation created 3months prior to the current period. In addition, the life applied to the original asset on creation was incorrect and requires amendment.
Can you please advise on the correct actions required for;
1. reflecting the adjustment to the cost (increase Current cost to include the additional invoice value?)
2. amending the useful life of the entire asset (I presume this should be a case of entering the corrected life based on DPIS? and not based on the adjustment date?).
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