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what is the use of Allow amortized changes in fixed assets

Answer Posted / shankar ganesh c t

Asset A1 is brought into system at a cost of $10000 in
1996.After 12 yrs,additional parts brought into the same
asset and the cost of the asset increased to $12000 in 2008.

Now if we run depreciation,it will depreciate from the value
$12000 and not $10000.(Allow Amortized changes set to yes).

but if you want to depreciate $10000 till 2008 and
additional depreciation for $12000 from 2008.(Allow
Amortized changes set to No)

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