NewbyNewbyNew
Member
I looking for a way for JDE to calculate deprecation taking the current NBV / the remaining useful life.
The company I am working for was acquired 10 months ago. This requires that our fixed be restated to FMV at the time of the acquisition. With this change the useful life was adjusted as well. Management wants cost to be stated correctly at FMV at the time of the acquisition, but wants any depreciation change amortized over the remaining useful life (10 months have passed since the acquisition and deprecation has been booked at the old rate). In the example below, this asset was depreciation at the old rate of $650.35 for 10 months since the acquisition. Going forward I want the remaining NBV amortized over the remaining useful life of 50 or $143.08.
Thanks in advance for your help.
NewbyNewbyNew
For this example FMV = NBV
The company I am working for was acquired 10 months ago. This requires that our fixed be restated to FMV at the time of the acquisition. With this change the useful life was adjusted as well. Management wants cost to be stated correctly at FMV at the time of the acquisition, but wants any depreciation change amortized over the remaining useful life (10 months have passed since the acquisition and deprecation has been booked at the old rate). In the example below, this asset was depreciation at the old rate of $650.35 for 10 months since the acquisition. Going forward I want the remaining NBV amortized over the remaining useful life of 50 or $143.08.
Thanks in advance for your help.
NewbyNewbyNew
For this example FMV = NBV
| 3/1/2014 | 12/31/2014 | Chg | |
| Orginal Cost | 54,630 | 54,630 | - |
| Acc Depre | (40,972) | (47,476) | (6,504) |
| Net NBV | 13,657 | 7,154 | (6,504) |
| New Adjusted Cost | 13,657 | ||
| Acc Deprecation Since Acqusition | (6,504) | 10 | (650) |
| NBV 1/3/15 | 7,154 | 50 | 143.08 |
| Deprecation Start Date | 3/12/2014 | ||
| New Useful life | 60 | ||
| Months Expired since Acquisition | 10 | Mar - Dec | |
| Remaining Monthts | 50 | ||
| New Monthly depreciation Cost | 143.08 | ||
| Old | New | ||
| Cost | 54,630 | 13,657 | |
| Accumulated Deprec | (40,972) | (6,504) | |
| Net Book Value | 13,657 | 7,154 | |
| Useful Life | 84 | 60 | |
| Expired Months | -63 | -10 | |
| Remaining Months | 21 | 50 | |
| Monthly Rate | 650.35 | 143.08 | * |
| * Current NBV / remaing useful life |
