Handling special transactions

This section will provide some instructions on how to consider certain transactions in MYOB Assets Live.

Accounting basis depreciation, impairment losses and revaluations

• Calculating depreciation on an accounting basis rather than a taxation basis is currently not supported.

• Impairment losses and revaluations are only relevant for accounting depreciation, so are currently no supported.

Additional expenses

Additional expenses (also called second element expenses) are additions to an existing asset in the year(s) following the year of purchase.

These are depreciated at the Year 1 rate (in the year they are added), while the existing / main asset is depreciated at the Year 2+ rate.

For example, if you purchased a car in year 1 and in year 2 you added mag wheels, the car would be depreciated at the Year 2+ rate and the mag wheels would be depreciated at the Year 1 rate.

To record additional expenses:

Create a new asset under the existing / main asset by using an appropriate Asset Code structure, e.g.,

1.00 Ford Falcon
1.0.1 Mag Wheels
1.02 After Market Stereo
1.03 Bluetooth hands-free kit

Balancing offset adjustments

A balancing offset adjustment is where you offset the profit resulting from the sale of an asset against the cost of the replacement asset. The profit on sale is not accessible, but you are required to reduce the cost of the replacement asset, thereby also reducing the depreciation (which thereby offsets the tax free profit made on the sale).

Balancing offset adjustments only apply:

• to tax depreciation

• if the disposal was involuntary (e.g., lost, destroyed or acquired by the government as a compulsory acquisition).

The offset can only be assigned to certain classes of assets:

• assets with no private use

• not fully depreciated

• (Australia) not pooled

• not sold.

A balancing offset adjustment should not be required very often (as it only occurs when it is an involuntary disposal and a profit is made on the disposed asset). It is therefore not supported in MYOB Assets Live.

If you want to account for a balancing offset adjustment, when the replacement asset is added, create 2 assets instead of 1;

• one with the reduced cost - which is depreciated normally.

• one for the difference between the actual cost and the reduced cost. This should be depreciated at a zero depreciation rate.

This way the cost of all the assets in the asset register will match cost according to the balance sheet / general ledger and the correct amount of depreciation will also be claimed.

Incidental costs

Incidental costs are costs such as the cost of advertising relating to the disposal of an asset. These are not included when calculating depreciation or capital loss / gain, etc.

If you wish to record any incidental costs, enter it in the Notes section for each asset.

Other associations - suppliers, cost centres, asset types

If you wish to record this data, enter it in the Notes section for each asset.

Part selling an asset

If you want to part sell an asset:

1. Split the original asset into 2 assets and sell the one being sold:

   • In the year the assets was added, edit the asset and reduce the cost by the cost value of the part of the asset being sold.

   • In the year the asset was added, create a new asset with the cost value of the part being sold. Ensure that the depreciation rate, method and private use %, etc., are the same as the main asset.

   • The net effect on depreciation and total closing written down value should be the same as before you split the asset into 2.

2. Navigate to the year in which the part sale is being made:

• Sell the relevant asset.

Allocate and deallocate

The features allocate and deallocate are currently not supported in MYOB Assets Live.

Multiple account periods

Depreciation calculation using multiple account periods is currently not supported by MYOB Assets Live.

By default, MYOB Assets Live only calculates depreciation for one complete year.