Hi guys,
I am trying to figure out how to do the following:
I have assets that are fully depreciated some years ago but they are still operational (not deactivated).
Now, according to IFRS standards, the assets' useful lives are being reviewed and many of them now will have longer useful lives.
For example, I have asset with value 24,000 with useful life 2 years.
Straight line depreciation started from 01.01.2014 to 31.12.2015. So, each month 1,000 will be depreciated until all 24 months.
Now in May 2016, I want to change the useful life to 4 years. So, remaining life from start of 2016 is 2 years and depreciated are 2 years. And I want to depreciate the same 24,000 over 4 years.
I want to credit depreciation expense with 12,000 and debit accumulated depreciation. Then, depreciation run will start posting debit depreciation expense with 500 and credit accumulated depreciation every month for 2 years. My run in May 2016 will post the monthly depreciation from January till May, so 2,500.
I tried using AFAR. The transaction will adjust the accumulated depreciation when i change the useful life but only in the fiscal year where the asset was last depreciated and only if it is still open. Furthermore, I can see the adjustment planned in period 12 of 2015, which is not the desired effect. I want the adjustment to be planned and posted in the current period where I made the useful life change.
Any idea on how to achieve this?
I would appreciate it.
Regards,
Raed