This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
In some circumstances, you must recalculate the effective life of a depreciating asset.
You must recalculate the effective life if its cost is increased by 10 per cent or more in an income year after the one in which its start time occurs and you either:
- worked out the effective life of the asset yourself or
- used the Commissioner's determination of effective life and the prime cost method to work out the asset's decline in value.
Even though you may be required to recalculate the effective life of an asset, you may conclude that the effective life is the same.
You may also be required to recalculate the effective life of a depreciating asset you:
Last modified: 01 Jun 2005QC 27399