Calculating the Termination Value of a pooled asset where a cost limit has been previously applied

This support note applies to:

• AE Assets (AU)

In MYOB Accountants Enterprise Assets (AE Assets) version 2.4, in the situation where you are establishing a Small Business (SB) Pool where assets already exist, if an asset previously had a cost limit applied and has now been allocated to the SB Pool and subsequently sold, some reports show the termination value incorrectly as including the cost limit for Accounting Reporting.

Where an asset in the SB General Pool has been sold, where the asset previously had a cost limit applied, the termination value should be calculated as follows for Taxation purposes:

(Cost Limit/Original Purchase Price) * Proceeds of Sale * Business Use

When reporting for accounting purposes however, the cost limit should be omitted from the calculation but is instead incorrectly included. This results in some reports showing the incorrect termination value.

For the correct calculation and reporting, use Assets live.