Solved

How do you determine the current value of your  IT assets, not replacement costs but actual current value...

Posted on 2006-07-15
3
229 Views
Last Modified: 2010-04-26
I am needing to determine the value of all of our IT Hardware and software. This is not replacement value but current actual value, taking into consideration the age of equipment, wiring, software etc. Is there an "easy" way to do this, perhaps a formula of some sort. This is a first for me. Frankly, I find replacement costs much easier to determine. Any ideas will be appreciated. Unfortunately I need this assistance as soon as possible as I am working on this project as we speak. J
0
Comment
Question by:jstilgen
  • 2
3 Comments
 
LVL 12

Accepted Solution

by:
GinEric earned 500 total points
ID: 17115081
Under IRS rules:

Find Class Life Asset

Inventory all of your equipment and assing each a Class Life.

Start with the purchase price and use the depreciation method for Class Life Assets.

For example, if your company has depreciated them over the last three years with a Class Life Asset deduction, find those accounting records and the remaining value at the end of this year is their value.

Generally, if a 5 year life, by this third year the value will be less than 40% of the cost [purchase price].

Once you depreciate equipment, you have to stick with that method of depreciation.  The methods are generally life/years, Sum of the Years Digits, and a few others.  Sum of the Years Digits gives the maximum depreciation for a Class Life Asset.  life/years is a simple percentage deduction per year.

Call accounting and get the figures.  If you don't have accounting or the company has not depreciated this equipment, you have a problem, more ways than one.

The formulae are available at the IRS site.  The figures are available at your accounting department.
0
 

Author Comment

by:jstilgen
ID: 17115131
Thanks for the answer, I only wish I was smart enough to understand the IRS info :) I will get our bean counter involved and we will get this done. Again thanks for your answer, I appreciate it! J
0
 
LVL 12

Expert Comment

by:GinEric
ID: 17142775
You're welcome.  Let me know how you make out.
0

Featured Post

Backup Your Microsoft Windows Server®

Backup all your Microsoft Windows Server – on-premises, in remote locations, in private and hybrid clouds. Your entire Windows Server will be backed up in one easy step with patented, block-level disk imaging. We achieve RTOs (recovery time objectives) as low as 15 seconds.

Join & Write a Comment

Suggested Solutions

Title # Comments Views Activity
Desktop vs. laptop 39 80
Difference between HP monitors 3 57
8 partitions?!  Really? 8 103
Rubber hose 5 47
The Rasberry PI is a low cost piece of hardware that you can have a lot of fun with through experimenting and building/working on projects like media players, running a low cost computer, build data loggers etc. - see: https://www.raspberrypi.org
In this article you will get to know about pros and cons of storage drives HDD, SSD and SSHD.
Internet Business Fax to Email Made Easy - With eFax Corporate (http://www.enterprise.efax.com), you'll receive a dedicated online fax number, which is used the same way as a typical analog fax number. You'll receive secure faxes in your email, fr…
Polish reports in Access so they look terrific. Take yourself to another level. Equations, Back Color, Alternate Back Color. Write easy VBA Code. Tighten space to use less pages. Launch report from a menu, considering criteria only when it is filled…

760 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question

Need Help in Real-Time?

Connect with top rated Experts

25 Experts available now in Live!

Get 1:1 Help Now