Guidelines for Suspending and Resuming Depreciation

You can suspend or resume the depreciation of an asset.

Note: If you suspend depreciation of an asset when the asset is added, Assets expenses the missed depreciation in the period in which the depreciation for the asset is enabled.

Calculation of the missed depreciation varies depending on which of the following types of depreciation methods you use:

Method Type

Explanation

Table and calculated methods

  • Assets calculates depreciation expense for the asset based on an asset life that includes the periods not depreciated.

  • If depreciation was suspended after an asset started depreciating, Assets catches up the missed depreciation expense in the last period of the asset's life.

Flat-rate methods

  • Assets continues calculating depreciation expense for the asset based on the flat-rate.

  • For flat-rate methods that use the net book value, Assets uses the asset net book value at the beginning of the fiscal year in which you resume depreciation. The asset continues depreciating until it becomes fully reserved.