• When can't you recalculate effective life?

    You cannot recalculate the effective life of a depreciating asset where:

    • accelerated depreciation rates are available for the asset
    • the asset is an intangible asset, such as a licence, copyright or software
    • you simply miscalculated the existing effective life – that is, your circumstances of use have not changed. In this case, you may be able to correct the miscalculation by seeking an amendment of your existing estimate from the time allowed under the amendment provisions of the law.
      Last modified: 22 Aug 2016QC 16295