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Replacement Value

Enter the replacement value for the current fixed asset. This value refers to the market value of a corresponding new fixed asset including installation costs etc. at the time for the calculation. When registering new objects, you normally enter the same value as the acquisition value in this field. The replacement value is of importance mainly if the calculated depreciation is based on the replacement value. It is especially motivated to use the replacement value as a basis, when changes in prices and monetary value are occurring. Replacement value adjustment can be performed continuously, if the fixed asset's market value, etc. is changed. Such an index correction can be made in the Replacement Value Adjustment procedure.