Extending the Useful Life of an asset will change the depreciation rate and the End of Life date. You would choose a reassessment for this adjustment.
Below are two ways you can do this:
Firstly, extending the Useful Life.
This is my original asset first used 23 March 2020 with Prime Cost depreciation at 12.5% over 8 years. In this example I want to reassess the asset as at 1/7/2024 extending the useful life by 6 months.
Below is an easy to create spreadsheet that will assist in calculating the new End of Life date to give the desired result of adding 6 months to the Useful Life.
By entering the original purchase date (even if it is before the opening balance) and the New Life, the End of Life date will be calculated using the highlighted formula.
I have entered the original Purchase date of 23/3/2020 which is a few months before the opening balance date of 30/6/2020. My original life was 8 years, so in this sheet I have added 6 months to the original life and changed it to 8.5 years for the New Life.
The calculated End of Life date is 19/9/2028.
In AssetAccountant I have selected a new reassessment and I have entered the details selecting “End of Effective Life” as my option.
Reassessing with the option of End of Effective Life as calculated, my remaining life will be 4.22 yrs with an adjusted rate of 23.69%
Once reassessed my asset now reflects the life of 8.495 years at 23.69%. My depreciation is adjusted as at 1/7/2024.
The second way to reassess the asset is to change the Effective Life in years instead of choosing End of Effective Life.
The remaining life and rate calculated would have been much the same, with a very slight variation in the period and depreciation:
Effective Life: 4.222 yrs vs 4.227 yrs
Depreciation: 23.69% vs 23.66%
If you have many assets to reassess, Bulk Reassessments are available in the Bulk Actions menu.