Our company was acquired by another company and they want to change the way we currently calculate on the depreciation. The depreciation method is set up as straight line but it is using the half year averaging convention. Now, we want to switch from half year average to full year depreciation for all assets from going forward the the remainder life of each asset without reflecting on previous months?
You can change the depreciation method, further calculations will go on with the new schema, and no changes will apply to previous periods. Usually changes are done (and are allowed by accounting rules), starting with a new financial year, it’s easier, too.
However, pay attention to how changes will affect the “life span” of FA. If, for example, you change straightline percentage from 20% to 15%, it actually will move the ending date further in future.
Many ways and conditions exist, a thorough review will be needed for all FAs to understand how changes affect depreciation calculation from accounting view, but from Navision technical point of view there will be no problems. Previous calculations will be left intact, the book value at the moment of method change will be taken as basis for further calculations.