Use this calculation when every balance, flow, and elapsed period follows the same accounting basis, currency, entity boundary, and reporting period. It is useful for a reproducible schedule or analytical cross-check, but the result should still reconcile to the ledger.

Cost

Original capitalized cost of the asset.

Accumulated depreciation

Accumulated depreciation recorded through the revision date.

New remaining years

Revised remaining useful life in years measured from the revision date; must be greater than zero.

New salvage value

Revised salvage value expected at the end of the revised life.

The implemented rule is: Compute revised annual straight-line depreciation after a useful-life estimate change: book value at revision minus revised salvage, divided by remaining years, applied prospectively.^[1]

Book value at revision

Cost less accumulated depreciation at the revision date, the basis for the prospective change.

Revised annual depreciation

Annual straight-line depreciation for remaining years after the revision.

The calculator applies the stated arithmetic and does not decide whether a recognition method or classification is permitted under a particular accounting framework. Estimates, cutoff errors, seasonality, acquisition effects, inconsistent averages, and differing policies can make a mathematically correct result misleading.

Reconcile the inputs to the general ledger and supporting schedules. For reporting decisions, compare the result with the entity's accounting policy, applicable GAAP or IFRS guidance, prior-period disclosures, and an accountant's review.

• Units-of-Production Depreciation Rate Calculator

  Compute the units-of-production depreciation rate per unit as cost minus salvage value divided by estimated total units of output.

• Disposal Gain or Loss Calculator

  Determine the gain or loss on disposing of a depreciable asset: book value as cost minus accumulated depreciation, then sale proceeds minus book value.