Revaluation in PPE

Hi, The depreciation charge will be for the twelve months from 1 April 2014 to 31 March 2015. From the 1 April 2014 to 1 October 2014 (date of revaluation) the charge will be based on the original cost of $12m over the 20 years and pro-rated for six months. From 1 October 2014 to 31 March 2015 (reporting date) the charge will be based on the revalued amount of $10.8m over the remaining useful life. The difficulty is knowing the remaining life of the asset. Given the annual depreciation charge was initially $0.6m ($12m/20 years) and the accumulated depreciation at the start of the year was $3.6m, then we have used the asset for 6 years ($3.6m/$0.6m) at the start of the year. Given that the asset was revalued six months into the current year then we have used the asset for 6 years and 6 months, hence the are 13 years and 6 months left of the assets life. You can now use this figure to held calculate the depreciation for the second half of the year. Give it a go and see how you get on. Thanks