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I'm building an asset manager that will manage all fixed assets in one single web application for multiple schools.

Schools can transfer assets between them; this is where I get confused on the depreciation value.

Say School A purchases a new server for £5425.93 on 19/05/2017. They decide to transfer this asset to School B, 3 months later. The asset will be depreciated over 3 years, thus a depreciation end date of 19/05/2020.

At this point in time, the asset would have a depreciation charge of £4978.29:-

Year 1 - ((£5425.93 * 0.33) / 12) * 3 = £447.63

[TRANSFERRED ON 19/08/2017]

Net Book Value: £4978.29

...and thus a net book value of £4978.29 because it is being "disposed" or "transferred".

Does the school then carry on depreciating from £4978.29 for the remaining 33 months? i.e. from the net book value carried over, which would be their purchase cost?

Year 1 - ((£4978.29 * 0.33) / 12) * 12 = £1642.84
Year 2 - ((£3335.45 * 0.33) / 12) * 12 = £1100.64
Year 3 - ((£2234.81 * 0.33) / 12) * 9 = £553.14

Final Value -  £1681.67

Any help would be massively appreciated.

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Is this an internal transfer between schools within the same legal entity (i.e. schools within the same district with the same fixed asset policy)? If yes, then because you are not changing legal ownership of the asset, you would continue the depreciation and cost basis as initially calculated assuming no damage occurred in transit. If no and the schools are two separate entities, you would need to create a new cost basis and service life for the asset.

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