Have a Question on Amortized Adjustments in FA with Example Calculations? (Doc ID 1192356.1)
Dear Team,
Could you please help on this below example, If I pass the Amrortization Start Date 31-AUG-10 but we are in DEC-10 then how the below example calculation would be as per (Doc ID 1192356.1)
For example, if you have asset with cost = 12000 $ and placed in service 01-JAN-2010 with method STL 12 months
In period AUG-10, the method is changed to STL 15 months
If the adjustment is Amortized in the adjustment period:
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Depreciation when life is 12 months = 12000/12 = 1000
In period AUG-10, the life is adjusted from 12 to 15 amortized from 01-AUG-2010
Net Book Value = Cost - Reserve = 12000 - (1000 * 7) = 5000
remaining life = 8 months (from AUG-10 to MAR-11)