Fixes asset's depreciation after subsequent acquisition
An asset has the following values:
APC = 27,300
Useful life = 37
Remaining life = 8
and its depreciation type has:
Depreciation Method = straight-line
Calculation Method = Percentage of Acquisition Value
Percentage = 33%
Following a subsequent acquisition of 27,300 the monthly depreciation is not the double of the original one (acquisition value was doubled by the subsequent acquisition),
but the original monthly depreciation + 27.300 / 8 (the subsequent acquisition's value / the remaining life)
I would expect such a behaviour only if the Calculation Method was "Net book Value / Remaining Life".
Am I misunderstanding how it should work? How to have it to increase the depreciation "by the amount which would have been necessary to fully depreciate the addition over the original useful life of the asset" as told in the FA help?
In fact I am a little bit confused also by having the opportunity to set the useful life when the calculation method is "Percentage of Acquisition value", so should be based on a percentage. The same confision on the other side, when a percentage is to be set at the depreciation type's calculation despite choosing a time based calculation method.