The recosting of fixed assets

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After the acquisition of the asset value according to the price of the purchase plus all the expenses spent on it until it becomes ready to work, there are additional expenses that may be spent on the asset after use, such as maintenance expenses and operating expenses or development, and here we must distinguish between two types of expenses which are loaded on the origin, including what was loaded on the income of the financial period.

The expenses
and fees paid by taxpayers and benefit from established established one financial year or less, and named after بالايرادية because they contribute to the achievement of the revenue during the financial year, so as to appear in the list of deductible from income from revenue, such as maintenance fees and expenses for salaries and expenses for the origin of the electricity and telephone and advertising and others, and is recorded in the books by name in the debtor party as has been explained in previous lessons.

Capital Expenses
are expenses paid by established benefiting established for more than one financial year, such as expenses for building renovation and replacement of the engine of the vehicle these expenses spent on the original venue will cover a period exceeding one year or increase the productive life of the asset.

Authorized capital expenses are those expenses which will increase the productive life of the asset are loaded on the cost of the asset, the wilful expenses are loaded on the income of the period so as to appear in the list of deductible from income and revenues of the current period closed at the end of the period, such as expenditures on the maintenance and repair of origin to maintain productive age is estimated asset.

The recosting of the productive life of the asset
that the capital expenses that are loaded on the cost of the asset will increase the productive life of the asset and this in turn requires us to estimate the productive life of the asset again and change the premium for depreciation for the coming year and in which the appreciation and without affecting the previous years, the share of depreciation is calculated according to the following equation: New

pocket money new depreciation = the net book value of the asset - scrap the
remaining productive age
note: the

net book value of an asset = the cost of the asset depreciation complex -
for example
if i knew that hope had bought in 01/01/2012 A car worth $10,000, and estimating a LIFESPAN of 5 years worth $57,678 B2000, 01/01/2015 The company decided to re-assess the estimated productive life of the vehicle from 5 years to 7 years Note that the company used a fixed installment,

pocket money is required: calculate the depreciation for the year 2015.
Calculate the pocket money for depreciation for the year 2015 if we assume that the cost of improvements (pocket money equals 3000$ 392,000).
The solution:
1 extraction is pocket money originally depreciation by age old productive

old depreciation premium = 10000 - 2000 = 1600
5
2 Extract the balance of the depreciation of the vehicle compound until 01/01/2015, which is equal to the total premium for depreciation for the years 2012 2013 2014 4800 $ 33,525,000

3 Extract the book value of the vehicle, which was equal to the cost of the vehicle - the vehicle depreciation complex


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