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Suppose a financial year starts at 1st Jan, when revaluation and useful life change, is the treatment for 31st Dec and 1st Jan the same?
Any change in estimated remaining useful life or revaluation / impairment is effective from the date that that re-assessment takes place
So, if estimated remaining life is re-assessed on 31 May and changed, that change is effective from ! June
The asset will be depreciated for 5 months at the previous rate and for the remaining 7 months at the revised rate
However, the probability is that, in real life, the re-assessment will take place officially as at the accounting reference date (ie the accounting year end date)
OK?
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