There are two separate revaluations to be done in this specific order, to adjust the useful life of an asset and then depreciate it based on the new useful life and current book value.
1. Change the depreciation method from Straight Line to Straight Line Remaining . This method is similar to the standard Straight Line method but will depreciate the asset from the value at the start of the method rather than the original cost.
2. Change the useful life to the new remaining life plus the depreciated periods. For example if the asset was depreciated for 49 periods and to be depreciated for 131 more, then the new Useful Life of the asset should be 180.
Sample: The asset's original useful life is 10 and Original Cost of 50,000.00. The asset has been depreciated for 3 months at 5,000 each or a total Accumulated Depreciation of 15,000. The Current Net Book Value is 35,000.00 to be depreciated for new remaining life of 15:
Perform two revaluation steps:
1. Change the depreciation method to Straight line remaining
2. Set the new useful life to 18 (15+3)
Result: The depreciation of the 4th period is 2,333.33 (35,000 / 15)
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