Changes in Fixed Asset Estimates

Adding a fixed asset involves determining the estimated useful life and salvage amount of the asset. By their nature, estimates are subjective and may require revisions during the life of the asset. For example, the rapid technological advances may result in the actual useful life and salvage amount differing from your company's current estimates.

In MYOB Advanced, you can account for changes in the following estimates:

• The useful life of a fixed asset. For details, see To Change the Useful Life of an Asset.
• The salvage amount of a fixed asset. For details, see To Change the Salvage Value of an Asset.

Depreciation After Changes in Estimates

The changes in estimates effect the current and future periods. The system uses the revised value for the depreciation throughout entire asset life in periods after the change. You can configure the system to accelerate the depreciation for the assets that use the Straight-Line method. In this case, the asset depreciation the system uses the revised amount as the basis for the depreciation only in the periods after revaluation. For more information, see Depreciation Configuration.