Go Premium for a chance to win a PS4. Enter to Win

x
?
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
Medium Priority
?
239 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 2000 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

WatchGuard Case Study: NCR

With business operations for thousands of customers largely depending on the internal systems they support, NCR can’t afford to waste time or money on security products that are anything less than exceptional. That’s why they chose WatchGuard.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Every server (virtual or physical) needs a console: and the console can be provided through hardware directly connected, software for remote connections, local connections, through a KVM, etc. This document explains the different types of consol…
This paper addresses the security of Sennheiser DECT Contact Center and Office (CC&O) headsets. It describes the DECT security chain comprised of “Pairing”, “Per Call Authentication” and “Encryption”, which are all part of the standard DECT protocol.
This course is ideal for IT System Administrators working with VMware vSphere and its associated products in their company infrastructure. This course teaches you how to install and maintain this virtualization technology to store data, prevent vuln…
This video shows how to quickly and easily deploy an email signature for all users in Office 365 and prevent it from being added to replies and forwards. (the resulting signature is applied on the server level in Exchange Online) The email signat…
Suggested Courses

886 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