This document is an appendix to the documentation on the setup of Depreciation methods.

In standard, Sage X3 comes with a number of depreciation methods.
Some are associated with a given legislation, while others are common to all legislations.

This document describes the calculation principles of the depreciation methods associated with the Polish legislation.

SEEREFERTTO The other methods are described in appendix documentations, which can be accessed from the documentation on the depreciation methods common to all legislations.

ML - Polish Linear

This depreciation method is used in Poland.

 

SEEWARNING When the acquisition date of the asset is prior to the current fiscal year, it is not possible to re-calculate the depreciation total of the previous closed fiscal years. The depreciation total must always be specified by entry (or import) during the asset creation.

Depreciation origin

It is equal to the first day of the next month specified in the depreciation start date, except when the depreciation start date corresponds to the first day of a month, in which cas the depreciation will start to that date.

Examples :

Depreciation start date

Start point

01/01/2010

01/01/2010

15/01/2010

01/02/2010

Duration

The duration can be entered by the user.
It must be specified in years and year thousandths, or in number of months (by right-click option).
Example : 6,666 or 6,667 for a duration of 6 years 2/3.

The entered duration must correspond to an integer number of months. Otherwise, the decimal part of the duration is corrected according to the table below. 

SEEINFO  The Duration in months right click option, available in the Duration field, makes it possible to enter the duraction directly in months. This duration is then automatically converted into years and year thousandths.

Month 

Start range

End range

Correction

 0

 0

0.041

0

 1

 0.042

0.125

0.083

 2

 0.126

0.208

 0.167

 3

 0.209

0.291

0.25

 4

 0.292

0.375

0.333

 5

 0.376

0.458

0.417

 6

 0.459

 0.541

 0.50

 7

 0.542

0.625

0.583

 8

 0.626

0.708

0.667

 9

 0.709

0.791

0.75

 10

 0.792

0.875

0.833

 11

 0.876

0.958

0.917

 12

 0.959

1.041

1

SEEWARNING The user can also enter the rate. In this case, the rate comes before the entered duration is terms of priority.

Rate

The depreciation rate can be entered by the user in the form of a coefficient with a 6-decimal precision.

Example : 0.333333 

SEEINFO It is possible to enter either the rate, the duration, or both.
When entered, the rate is forced and comes before the duration.

  • When the duration is entered only, the rate is determined based on the duration, as follows: (1 / duration in months) * acceleration factor
    The displayed rate corresponds to the rate thus calculated, rounded to the 6th decimal digit.
    The non-rounded rate is the one used for the calculation.
     
  • When the rate is forced, the duration (calculated as follows: 1 / rate) is not displayed.
     

This acceleration coefficient, which part of the depreciation rate calculation, can be entered by the user or defined by associations (especially if this mode is also defined by associations). It can be modified by action Method change.

When its value is greater than 1, this coefficient increases the depreciation rate.
When its value is inferior to 1, this coefficient decreases the depreciation rate.

Depreciation end date

It is determined in several steps, as follows:

1/ Calculation of the annual reference depreciation charge :
Depreciation basis * Depreciation rate * Acceleration coefficient

2/ Calculation of the monthly reference depreciation charge :
Reference annual depreciation charge / Number of reference months

  • There are 12 reference months if no seasonality is applied, or if a seasonality of type Decreasing is applied.
  • The number of reference months corresponds to the number of periods, defined as active in the seasonality plan for an Increasing type seasonality.
     
    Seasonality plan : refer to the Specificities hereafter.

3/ Calculating the number of active months remaining for depreciation: :
Net value of current period start (1) / Monthly reference depreciation charge.
If the result contains decimal digits, it will be rounded as follows, depending on the value taken by the folder parameter MINPERDEP - Minimum period depreciation charge (AAS chapter, CLC group) (by default, this parameter has the value: 0.50):

  • If the decimal part leads to calculating a charge amount superior to the parameter value, a month will be added to the entire result.
  • Otherwise, the number of active months remaining for depreciation corresponds to the entire result.

4/ Depreciation end date calculation :
Current period start date (1) + number of active months remaining for depreciation (2)
The depreciation end date must always correspond to the last day of a month.

(1) In the case of retroactive modernization, the net value at the beginning of the modernization period and the start date of this modernization period are taken into account.
(2) Inactive months are not taken into account in this calculation.

Example 1:
  • Current period: 01/03/2010
  • Net value at period start: 1,000.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Type Decreasing seasonality plan:

     Month

    1 

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

     Active

     

     x

     x

     x

     x

     x

     x

     x

     x

     x

     

     

     
  • Annual reference depreciation charge: 500.00
  • Monthly reference depreciation charge: (500.00 / 12 ): 41.67
  • Number of active months remaining: 1,000.00 / 41.67 = 23.99808
  • Amount of depreciation charge corresponding to the decimal part 0.99808: 1,000.00 - (41.67 * 23) = 41.59
  • Number of active months remaining: 24 as 41.59 > 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 31/08/2012 (1)
     
    (1) 8 active months in 2010 ; 9 active months in 2011 and 7 active months in 2012
Example 2:
  • Current period: 01/03/2010
  • Net value at period start: 2,480.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Type Decreasing seasonality plan:
     

     Month

    1 

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

     Active

     

     x

     x

     x

     x

     x

     x

     x

     x

     x

     x

     

     
  • Annual reference depreciation charge: 1,240.00
  • Monthly reference depreciation charge: (1,240.00 / 12 ): 103.33
  • Number of active months remaining: 2,480.00 / 103.33 = 24.000774
  • Amount of depreciation charge corresponding to the decimal part 0.000774: 2,480.00 - (103.33 * 24) = 0.08
  • Number of months remaining: 24 as 0.08 < 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 30/06/2012 (1)
     
    (1) 9 active months in 2010 ; 10 active months in 2011 and 5 active months in 2012

Example 3:
  • Current period: 01/03/2010
  • Net value at period start: 1,000.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • No seasonality plan  
  • Annual reference depreciation charge: 500.00
  • Monthly reference depreciation charge: (500.00 / 12 ): 41.67
  • Number of active months remaining: 1,000.00 / 41.67 = 23.99808
  • Amount of depreciation charge corresponding to the decimal part 0.99808: 1,000.00 - (41.67 * 23) = 41.59
  • Number of active months remaining: 24 as 41.59 > 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 28/02/2012 (1)
     
    (1) 10 active months in 2010 ; 12 active months in 2011 and 2 active months in 2012
Example 4:
  • Current period: 01/03/2010
  • Net value at period start: 4,500.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Type Increasing seasonality plan:
     

     Month

    1 

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

     Active

     

     

     x

     x

     x

     

     

     

     

     
  • Annual reference depreciation charge: 2,250.00
  • Monthly reference depreciation charge: (2,250.00 / 3 ): 750.00 (1)
  • Number of active months remaining: 4,500.00 / 750.00 = 6
  • Depreciation end date: 31/08/2012 (1)
     
    (1) 3 active months in 2010 and 3 active months in 2011

Prorata temporis

In most cases, time is expressed in months.
A prorata temporis applies in the following cases:

  • During the acquisition fiscal year, if the depreciation origin is not the first day of the fiscal year.
  • If the fiscal year duration differs from 1 year.
  • During the fiscal year in which a modernization occurs.
  • During the disinvestment fiscal year: the charge is calculated until the end of the month during which the disposal occurs.

SEEINFO A fiscal year must always correspond to a calendar year and be broken down into 12 periods of 1 month.

Special features

Seasonality

This principle is based on the definition of annual seasonality plans with months declared as active or inactive.
The reference of a seasonality plan must be specified for each asset the seasonality applies to.

  • No depreciation is calculated for an inactive month.
  • The depreciation calculated for an active month depends on the defined seasonality type:
     
    Seasonality type : Increasing
    The FY depreciation charge is distributed over the active months.
     
    Seasonality type : Decreasing
    The FY depreciation charge corresponds to the total of charges of each active month. The monthly depreciation charge corresponds to 1/12th of the FY charge. The FY depreciation charge is thus calculated and decreased.
Modernization

An accounting asset can be subject to a modernization (by right-click option on the Depreciation table of the management function of Accounting assets) for the current period only.
A modernization process modifies the depreciation basis on the fiscal and/or accounting plan. As a consequence, the results of the calculation are modified.

  • On the fiscal plan, a modernization is taken into account from the first day of the next period.
     
  • On the accounting plan, the modernization is taken into account from the first day of the next period, except when the folder parameter MDRCURPER - Current period modernization (AAS chapter, CLC group) is set to Yes. In this case, the effective modernization date corresponds to the first day of the current period.

Depreciation charges

The FY charge is equal to:

Annual reference depreciation charge
*
Number of active months for depreciation (1) / Number of active months of the Fiscal year

  • The result is rounded to 2 decimal digits (for instance: 1.555 is rounded to 1.56 and 1.554 is rounded to 1.55).
  • On the last depreciation fiscal year, the FY charge will be equal to the net value of the period start.
  • (1) The number of active months for depreciation corresponds to the number of active months included in the following range:

[Max (Depreciation start date, Fiscal year start date, Modernization start date), Min (Fiscal year end date, disposal date)]

Notes: :
- Depreciable value = Gross value – Residual value
- Net depreciable value = Net value – Residual value

Distribution of the fiscal year charge on the periods

The FY depreciation charge is distributed over the periods. This distribution is applied according to the following rule:

Period charge = Reference annual charge
                            *( Σ p1 to pc (Number of active days for depreciation in the period )
                             / Number of months in the fiscal year
                             - Depreciation totals of previous periods of the FY (2)

p1 to pc = from the 1st active period for depreciation in the fiscal year (1), to the current period included.

(1) The first active period for depreciation corresponds to the next period having the greater date:
- Depreciation start date
- Fiscal year start date
- Modernization date

(2) In case of modernization, the depreciation total of previous periods is reduced by the depreciation total before modernization.

The depreciation of the last period equals the net value.

..\FCT\SEEINFO For this depreciation method, the period weight is not taken into account.

Examples

1st Example: without seasonality plan
  • Depreciation basis: 9,500.00
  • Residual value: 0
  • Value for depreciation: 9,500.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Purchase date: 03/02/2010
  • Depreciation start date: 01/03/2010
  • No seasonality plan: 12 active periods

Depreciation end date:

  • Annual reference depreciation charge: 9,500.00 * 0.5 * 0.1 = 4,750.00
  • Monthly reference depreciation charge: (4,750.00 / 12 ): 395.83
  • Number of active months remaining: 9,500.00 / 395.83 = 24.000202
  • Amount of depreciation charge corresponding to the decimal part 0.000202: 9,500.00 - (395.83 * 24) = 0.08
  • Number of active months remaining: 24 as 0.08 < 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 29/02/2012 (1)
     
    (1) 10 holding months in 2010 ; 12 holding months in 2011 and 2 holding months in 2012.

Distribution of the depreciation on fiscal years:

Fiscal year 

Reference
Annual depreciation charge 

Net value

Annual depreciation charge

 Depreciation total

 2010

  (1) 4,750.00

 9,500.00

 (2) 3,958.33

 3,958.33

 2011

       4,750.00

 5,541.67

 (3) 4,750.00

 8,708.33

 2012

       4,750.00

    791.67

 (4) 791.67

 9,500.00

 2013

       4,750.00

       0.00

             0.00

 9,500.00

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) 4,750.00 * (10 / 12) = 3,958.33
(3) 4,750.00 * (12 / 12)
(4) On the depreciation end fiscal year, the fiscal year charge is equal to the net value.

Distribution of the 2010 fiscal year charge on periods:

 Month
Period

 Reference
Annual depreciation charge

 Net value

 Depreciation charge
by period

 Total
of depreciation

 03/2010

 (1) 4,750.00

 9,500.00

 (2) 395.83

      395.83

 04/2010

      4,750.00

 9,104.17

 (3) 395.84

      791.67

 05/2010

      4,750.00

 8,708.33

 (4) 395.83

    1,187.50

 06/2010

      4,750.00

 8,312.50

      395.83

    1,583.33

 07/2010

      4,750.00

 7,916.67

      395.84

    1,979.17

 08/2010

      4,750.00

 7,520.83

      395.83

    2,375.00

 09/2010

      4,750.00

 7,125.00

      395.83

    2,770.83

 10/2010

      4,750.00

 6,729.17

      395.84

    3,166.67

 11/2010

      4,750.00

 6,333.33

 (5) 395.83

   3,562.50

 12/2010

      4,750.00

 5,937.50

 (6) 395.83

   3,958.33

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 12) -0 = - 395.83
(3) (4,750.00 * 2 / 12) - 395.83 = 395.84
(4) (4,750.00 * 3 / 12) - 791.67 = 395.83
...
(5) (4,750.00 * 9 / 12) - 3,166.67 = 395.83
(6) (4,750.00 * 10 / 12) - 3,562.50 = 395.83

Distribution of the 2012 fiscal year charge on periods:

 Month
Period

 Reference
Annual depreciation charge

 Net value

 Depreciation charge
by period

 Total
of depreciation

 01/2012

 (1) 4,750.00

 791.67

 (2) 395.83

      395.83

 02/2012

      4,750.00

 395.84

 (3) 395.84

      791.67

 03/2012

      4,750.00

    0.00

          0.00

      791.67

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 12) -0 = - 395.83
(3) On the last period, the periodic depreciation equals the net value. 395.84

2nd example: with seasonality plan of type Decreasing
  • Depreciation basis: 9,500.00
  • Residual value: 0
  • Value for depreciation: 9,500.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Purchase date: 03/02/2010
  • Depreciation start date: 01/03/2010
  • Type Decreasing seasonality plan: 12 active periods
     

     Month

    1 

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

     Active

     x

     x

     x

     x

     x

     

     

     

     

     x

     x

     x

Depreciation end date:

  • Annual reference depreciation charge: 9,500.00 * 0.5 * 0.1 = 4,750.00
  • Monthly reference depreciation charge: (4,750.00 / 12 ): 395.83
  • Number of active months remaining: 9,500.00 / 395.83 = 24.000202
  • Amount of depreciation charge corresponding to the decimal part 0.000202: 9,500.00 - (395.83 * 24) = 0.08
  • Number of active months remaining: 24 as 0.08 < 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 28/02/2013 (1)
     
    (1) 6 active months in 2010 ; 8 active months in 2011 ; 8 active months in 2012 and 2 active months in 2013

Distribution of the depreciation on fiscal years:

Fiscal year 

Reference
Annual depreciation charge 

Net value

Annual depreciation charge

 Depreciation total

 2010

 (1) 4,750.00

 9,500.00

 (2) 2,375.00

 2,375.00

 2011

       4,750.00

 7,125.00

 (3) 3,166.67

 5,541.67

 2012

       4,750.00

 3,958.33

      3,166.67

 8,708.34

 2013

       4,750.00

    791.66

 (4) 791.66

 9,500.00

2014

       4,750.00

       0.00

           0.00

 9,500.00

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) 4,750.00 * (6 / 12) = 2,375.00
(3) 4,750.00 * (8 / 12) = 3,166.67
(4) On the depreciation end fiscal year, the fiscal year charge is equal to the net value.

Distribution of the 2010 fiscal year charge on periods:

Month
Period 

 Period
active

 Reference
Annual depreciation charge 

 Net value

Periodic charge 

 Depreciation total

 03/2010

 1/12

 (1) 4,750.00

 9,500.00

 (2) 395.83

      395.83

 04/2010

 2/12

      4,750.00

 9,104.17

 (3) 395.84

      791.67.

 05/2010

 3/12

      4,750.00

 8,708.33

 (4) 395.83

    1,187.50

 06/2010

 3

      4,750.00

 8,312.50

         0.00

    1,187.50

 07/2010

 3

      4,750.00

 8,312.50

         0.00

    1,187.50

 08/2010

 3

      4,750.00

 8,312.50

         0.00

    1,187.50

 09/2010

 3

      4,750.00

 8,312.50

         0.00

    1,187.50

 10/2010

 4/12

      4,750.00 

 8,312.50

      395.83

    1,583.33

 11/2010

 5/12

      4,750.00

 7,916.67

 (5) 395.84

    1,979.17

 12/2010

 6/12

      4,750.00

 7,520.83

 (6) 395.83

    2,375.00

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 12) -0 = - 395.83
(3) (4,750.00 * 2 / 12) - 395.83 = 395.84
(4) (4,750.00 * 3 / 12) - 791.67 = 395.83
...
(5) (4,750.00 * 5 / 12) - 1,583.33 = 395.84
(6) (4,750.00 * 6 / 12) - 1,979.17 = 395.83

Distribution of the 2013 fiscal year charge on periods:

Month
Period 

  Reference
Annual depreciation charge

 Net
Value

Periodic charge  

 Depreciation total

 01/2013

 (1) 4,750.00

 791.66

 (2)   395.83

 395.83

 02/2013

      4,750.00

 395.83

 (3)   395.83

 791.66

 03/2013

      4,750.00

   0.00

            0.00

 791.66

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 12) -0 = - 395.83
(3) On the last period, the periodic depreciation charge equals the net value.

3rd example: with seasonality plan of type Decreasing
  • Depreciation basis: 9,500.00
  • Residual value: 0
  • Value for depreciation: 9,500.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Purchase date: 03/02/2010
  • Depreciation start date: 01/03/2010
  • Type Increasing seasonality plan: 8 active periods
     

     Month

    1 

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

     Active

     x

     x

     x

     x

     x

     

     

     

     

     x

     x

     x

Depreciation end date:

  • Annual reference depreciation charge: 9,500.00 * 0.5 * 0.1 = 4,750.00
  • Monthly reference depreciation charge: (4,750.00 / 8 ): 593.75
  • Number of active months remaining: 9,500.00 / 593.75 = 16
  • Corresponding depreciation charge amount: 9,500.00 - (593.75 * 16) = 0
  • Number of active months remaining: 16 as 0.00 < 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 29/02/2012 (1)
     
    (1) 6 active months in 2010 ; 8 active months in 2011 and 2 active months in 2012

Distribution of the depreciation on fiscal years:

Fiscal year 

Reference
Annual depreciation charge 

Net value

Annual depreciation charge

 Depreciation total

 2010

 (1) 4,750.00

 9,500.00

 (2) 3,562.50

 3,562.50

 2011

       4,750.00

 5,937.50

 (3) 4,750.00

 8,312.50

 2012

       4,750.00

 1,187.50

 (4) 1,187.50

 9,500.00

 2013

       4,750.00

    0.00

          0.00

 9,500.00

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) 4,750.00 * (6 / 8) = 3,562.50
(3) 4,750.00 * (8 / 8) = 4,750.00
(4) On the depreciation end fiscal year, the fiscal year charge is equal to the net value.

Distribution of the 2010 fiscal year charge on periods:

Month
Period 

 Period
active

 Reference
Annual depreciation charge 

 Net value

Periodic charge 

 Depreciation total

 03/2010

 1/8

 (1) 4,750.00

 9,500.00

 (2) 593.75

      593.75

 04/2010

 2/8

      4,750.00

 8,906.25

 (3) 593.75

    1,187.50

 05/2010

 3/8

      4,750.00

 8,312.50

 (4) 593.75

    1,781.25

 06/2010

 3

      4,750.00

 7,718.75

         0.00

    1,781.25

 07/2010

 3

      4,750.00

 7,718.75

         0.00

    1,781.25

 08/2010

 3

      4,750.00

 7,718.75

         0.00

    1,781.25

 09/2010

 3

      4,750.00

 7,718.75

         0.00

    1,781.25

 10/2010

 4/8

      4,750.00 

 7,718.75

      593.75

    2,375.00

 11/2010

 5/8

      4,750.00

 7,125.00

 (5) 593.75

    2,968.75

 12/2010

 6/8

      4,750.00

 6,531.25

 (6) 593.75

    3,562.50

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 8) -0 = - 593.75
(3) (4,750.00 * 2 / 8) - 593.75 = 593.75
(4) (4,750.00 * 3 / 8) - 1,187.50 = 593.75
...
(5) (4,750.00 * 5 / 8) - 2,375.00 = 593.75
(6) (4,750.00 * 6 / 8) - 2,968.75 = 593.75

Distribution of the 2012 fiscal year charge on periods:

Month
Period 

  Reference
Annual depreciation charge

 Net  
Value 

Periodic charge  

 Depreciation total

 01/2012

 (1) 4,750.00

 1,187.50

 (2) 593.75

   593.75

 02/2012

      4,750.00

    593.75

 (3) 593.75

 1,187.50

 03/2012

      4,750.00

      0.00

            0.00

 1,187.50

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 8) -0 = - 593.75
(3) On the last period, the periodic depreciation charge equals the net value.

4th example: with Modernization and without seasonality plan
  • Depreciation basis: 9,500.00
  • Residual value: 0
  • Value for depreciation: 9,500.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Purchase date: 03/02/2010
  • Depreciation start date: 01/03/2010
  • Modernization: 01/04/2010
  • New depreciation basis: 12,000.00
  • Variance: 2,500.00
  • No seasonality plan: 12 active periods

Depreciation end date before modernization , on 01/03/2010:

  • Annual reference depreciation charge: 9,500.00 * 0.5 * 0.1 = 4,750.00
  • Monthly reference depreciation charge: (4,750.00 / 12 ): 395.83
  • Number of active months remaining: 9,500.00 / 395.83 = 24.000202
  • Amount of depreciation charge corresponding to the decimal part 0.000202: 9,500.00 - (395.83 * 24) = 0.08
  • Number of active months remaining: 24 as 0.08 < 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 29/02/2012 (1)
     
    (1) 10 holding months in 2010 ; 12 holding months in 2011 and 2 holding months in 2012.

Depreciation end date after modernization , on 01/04/2010:

  • Annual reference depreciation charge: 12,000.00 * 0.5 * 0.1 = 6,000.00
  • Monthly reference depreciation charge: (6,000.00 / 12 ): 500.00
  • Number of active months remaining: 11,604.17 (1) / 500.00 = 23.20834
  • Amount of depreciation charge corresponding to the decimal part 0.20834: 11,604.17 - (500.00 * 23) = 104.17
  • Number of active months remaining: 23 + 1 as 104.17 > 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 31/03/2012 (1)
     
    (1) Net start value on 01/04/2010: 120,000.00 - 395.83 = 11,604.17
    (1) From 01/04/2010: (1) 9 holding months in 2010 ; 12 holding months in 2011 and 3 holding months in 2012.

Distribution of the depreciation on fiscal years:

Fiscal year 

Reference
Annual depreciation charge 

Net value

Annual depreciation charge

 Depreciation total

 2010

 (1) 6,000.00

 12,000.00

 (2) 4,895.83

  4,895.83

 2011

       6,000.00

   7,104.17

 (3) 6,000.00

 10,895.83

 2012

       6,000.00

   1,104.17

 (4) 1,104.17

 12,000.00

 2013

       6,000.00

        0.00

          0.00

 12,000.00

(1) 12,000.00 * 0.5 * 1.00 = 6,000.00
(2) 6,000.00 * (9 / 12) + 395.83 = 4,895.83
(3) 6,000.00 * (12 / 12) = 6,000.00
(4) On the depreciation end fiscal year, the fiscal year charge is equal to the net value.

Distribution of the 2010 fiscal year charge on periods:

Month
Period 

 Reference
Annual depreciation charge 

 Net value

Periodic charge 

 Depreciation total

 03/2010

 (1) 4,750.00

   9,500.00

 (2) 395.83

      395.83

 04/2010

      6,000.00

 11,604.17

 (3) 500.00

      895.33

 05/2010

      6,000.00

 11,104.17

 (4) 500.00

    1,395.83

 06/2010

      6,000.00

 10,604.17

      500.00

    1,895.33

 07/2010

      6,000.00

 10,104.17

      500.00

    2,395.33

 08/2010

      6,000.00

  9,604.17

      500.00

    2,895.33

 09/2010

      6,000.00

  9,104.17

      500.00

    3,395.33

 10/2010

      6,000.00 

  8,604.17

      500.00

    3,895.33

 11/2010

      6,000.00

  8,104.17

 (5) 500.00

    4,395.33

 12/2010

      6,000.00

  7,604.17

 (6) 500.00

    4,895.33

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 12) -0 = - 395.83
(3) (6,000.00 * 1 / 12) - (395.83 - 395.83) = 500.00
(4) (6,000.00 * 2 / 12) - (895.83 - 395.83) = 500.00
...
(5) (6,000.00 * 8 / 12) - (3,895.83 - 395.83) = 500.00
(6) (6,000.00 * 9 / 12) - (4,935.83 - 395.83) = 500.00

Distribution of the 2012 fiscal year charge on periods:

Month
Period 

  Reference
Annual depreciation charge

 Net  
Value 

Periodic charge  

 Depreciation total

 01/2012

 (1) 6,000.00

 1,104.17

 (2) 500.00

    500.00

 02/2012

      6,000.00

   395.84

         500.00

 1,000.00

 03/2012

      6,000.00

      0.00

 (3) 104.17

 1,104.17

 04/2012

      6,000.00

      0.00

            0.00

 1,104.17

(1) 12,000.00 * 0.5 * 1.00 = 6,000.00
(2) (6,000.00 * 1 / 12) -0 = - 500.00
(3) On the last period, the periodic depreciation charge equals the net value.

5th example: with Modernization and seasonality plan of type Decreasing
  • Depreciation basis: 9,500.00
  • Residual value: 0
  • Value for depreciation: 9,500.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Purchase date: 03/02/2010
  • Depreciation start date: 01/03/2010
  • Modernization: 01/03/2010
  • New depreciation basis: 12,000.00
  • Variance: 2,500.00
  • Type Decreasing seasonality plan: 12 active periods

 Month

1 

2

3

4

5

6

7

8

9

10

11

12

 Active

 x

 x

 x

 x

 x

 

 

 

 

 x

 x

 x

Depreciation end date:
Before closing of period 3. Modernization on the 01/03/2010 will be applied on period 4.

  • Annual reference depreciation charge: 9,500.00 * 0.5 * 0.1 = 4,750.00
  • Monthly reference depreciation charge: (4,750.00 / 12 ): 395.83
  • Number of active months remaining: 9,500.00 / 395.83 = 24.000202
  • Amount of depreciation charge corresponding to the decimal part 0.000202: 9,500.00 - (395.83 * 24) = 0.08
  • Number of active months remaining: 24 as 0.08 < 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 28/02/2013 (1)
     
    (1) 6 active months in 2010 ; 8 active months in 2011 ; 8 active months in 2012 and 2 holding months in 2013

After closing of period 3. Modernization on the 01/03/2010 is applied on period 4.

  • Annual reference depreciation charge: 12,000.00 * 0.5 * 0.1 = 6,000.00
  • Monthly reference depreciation charge: 6,000.00 / 12: 500.00
  • Number of active months remaining: 11,604.17 (1) / 500.00 = 23.20834
  • Amount of depreciation charge corresponding to the decimal part 0.20834: 11,604.17 - (500.00 * 23) = 104.17
  • Number of active months remaining: 23 + 1 as 104.17 > 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 31/03/2013 (2)
     
    (1) Net start value on 01/04/2010: 120,000.00 - 395.83 = 11,604.17

    (2) from the 01/04/2010: (1) 5 active months in 2010 ; 8 active months in 2011 ; 8 active months in 2012 and 3 active months in 2013

Distribution of the depreciation on fiscal years:

Fiscal year 

Reference
Annual depreciation charge 

Net value

Annual depreciation charge

 Depreciation total

 2010

 (1) 6,000.00

 12,000.00

 (2) 2,895.83

  2,895.83

 2011

       6,000.00

   9,104.17

 (3) 4,000.00

  6,895.83

 2012

       6,000.00

   5,104.17

      4,000.00

 10,895.83 

 2013

       6,000.00

   1,104.17

 (4) 1,104.17

 12,000.00

 2014

       6,000.00

         0.00

            0.00

 12,000.00

(1) 12,000.00 * 0.5 * 1.00 = 6,000.00
(2) 6,000.00 * (5 / 12) + 395.83 = 2,895.83
(3) 6,000.00 * (8 / 12) = 4,000.00
(4) On the depreciation end fiscal year, the fiscal year charge is equal to the net value.

Distribution of the 2010 fiscal year charge on periods:

Month
Period 

 Active
Period

 Reference
Annual depreciation charge 

 Net value   

Periodic charge 

 Depreciation total

 03/2010

 1/12

 (1) 4,750.00

   9,500.00

 (2) 395.83

      395.83

 04/2010

 1/12

      6,000.00

 11,604.17

 (3) 500.00

      895.33

 05/2010

 2/12

      6,000.00

 11,104.17

 (4) 500.00

    1,395.83

 06/2010

 2

      6,000.00

 10,604.17

         0.00

    1,395.33

 07/2010

 2

      6,000.00

 10,604.17

         0.00

    1,395.33

 08/2010

 2

      6,000.00

 10,604.17

         0.00

    1,395.33

 09/2010

 2

      6,000.00

 10,604.17

         0.00

    1,395.33

 10/2010

 3/12

      6,000.00 

 10,604.17

      500.00

    1,895.33

 11/2010

 4/12

      6,000.00

10,104.17

 (5) 500.00

    2,395.33

 12/2010

 5/12

      6,000.00

  9,604.17

 (6) 500.00

    2,895.33

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 12) -0 = - 395.83
(3) (6,000.00 * 1 / 12) - (395.83 - 395.83) = 500.00
(4) (6,000.00 * 2 / 12) - (895.83 - 395.83) = 500.00
...
(5) (6,000.00 * 4 / 12) - (1,895.83 - 395.83 ) = 500.00
(6) (6,000.00 * 5 / 12) - (2,935.83 - 395.83) = 500.00

Distribution of the 2013 fiscal year charge on periods:

Month
Period 

  Reference
Annual depreciation charge

 Net  
Value 

Periodic charge  

 Depreciation total

 01/2013

 (1) 6,000.00

 1,104.17

 (2) 500.00

    500.00

 02/2013

      6,000.00

   395.84

         500.00

 1,000.00

 03/2013

      6,000.00

      0.00

 (3) 104.17

 1,104.17

 04/2013

      6,000.00

      0.00

            0.00

 1,104.17

(1) 12,000.00 * 0.5 * 1.00 = 6,000.00
(2) (6,000.00 * 1 / 12) -0 = - 500.00
(3) On the last period, the periodic depreciation charge equals the net value.

6th example: with modernization and seasonality plan of type Increasing
  • Depreciation basis: 9,500.00
  • Residual value: 0
  • Value for depreciation: 9,500.00
  • Depreciation rate: 0.5 (duration: 2 years)
  • Acceleration coefficient: 1
  • Purchase date: 03/02/2010
  • Depreciation start date: 01/03/2010
  • Modernization: 01/03/2010
  • New depreciation basis: 12,000.00
  • Variance: 2,500.00
  • Type Increasing seasonality plan: 8 active periods
     

     Month

    1 

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

     Active

     x

     x

     x

     x

     x

     

     

     

     

     x

     x

     x

Depreciation end date:
Before closing period 3. Modernization on the 01/03/2010 will be applied on period 4.

  • Annual reference depreciation charge: 9,500.00 * 0.5 * 0.1 = 4,750.00
  • Monthly reference depreciation charge: (4,750.00 / 8 ): 593.75
  • Number of active months remaining: 9,500.00 / 593.75 = 16
  • Corresponding depreciation charge amount: 9,500.00 - (593.75 * 16) = 0
  • Number of active months remaining: 16 as 0.00 < 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 28/02/2013 (1)
     
    (1) 6 active months in 2010 ; 8 active months in 2011, 8 active month in 2012 and 2 active months in 2013.

After closing of period 3. Modernization on the 01/03/2010 is applied on period 4.

  • Annual reference depreciation charge: 12,000.00 * 0.5 * 0.1 = 6,000.00
  • Monthly reference depreciation charge: 6,000.00 / 8: 750.00
  • Number of active months remaining: 11,406.25 (1) / 750.00 = 15.208333
  • Amount of depreciation charge corresponding to the decimal part 0.208333: 11,406.25 - (750.00 * 15) = 156.25
  • Number of active months remaining: 15 + 1 as 156.25 > 0.50 (value of parameter MINPERDEP)
  • Depreciation end date: 31/03/2012 (2)
     
    (1) Net start value on 01/04/2010: 120,000.00 - 395.83 = 11,604.17

    (2) From 01/04/2010: 5 active months in 2010, 8 active month in 2011 and 3 active months in 2012.

Distribution of the depreciation on fiscal years:

Fiscal year 

Reference
Annual depreciation charge 

Net value

Annual depreciation charge

 Depreciation total

 2010

 (1) 6,000.00

 12,000.00

 (2) 4,343.75

  4,343.75

 2011

       6,000.00

  7,656.25

 (3) 6,000.00

 10,343.75

 2012

       6,000.00

  1,656.25

 (4) 1,656.25

 12,000.00

 2013

       6,000.00

       0.00

           0.00

 12,000.00

(1) 12,000.00 * 0.5 * 1.00 = 4,750.00
(2) 6,000.00 * (5 / 8) + 593.75 = 4,343.75
(3) 6,000.00 * (8 / 8) = 6,000.00
(4) On the end-depreciation FY, the FY depreciation charge is equal to the net value

Distribution of the 2010 fiscal year charge on periods:

Month
Period 

 Active
Period

 Reference
Annual depreciation charge 

 Net value

Periodic charge 

 Depreciation total

 03/2010

 1/8

 (1) 4,750.00

  9,500.00

 (2) 593.75

      593.75

 04/2010

 1/8

      6,000.00

 11,604.17

 (3) 750.00

    1,343.75

 05/2010

 2/8

      6,000.00

 11,104.17

 (4) 750.00

    2,093.75

 06/2010

 3

      6,000.00

 10,604.17

         0.00

    2,093.75

 07/2010

 3

      6,000.00

 10,604.17

         0.00

    2,093.75

 08/2010

 3

      6,000.00

 10,604.17

         0.00

    2,093.75

 09/2010

 3

      6,000.00

 10,604.17

         0.00

    2,093.75

 10/2010

 3/8

      6,000.00 

 10,604.17

      750.00

    2,843.75

 11/2010

 4/8

      6,000.00

 10,104.17

 (5) 750.00

    3,593.75

 12/2010

 5/8

      6,000.00

  9,604.17

 (6) 750.00

    4,343.75

(1) 9,500.00 * 0.5 * 1.00 = 4,750.00
(2) (4,750.00 * 1 / 8) -0 = - 593.75
(3) (6,000.00 * 1 / 8) - ( 593.75 - 593.75 ) = 750.00
(4) (6,000.00 * 2 / 8) - (1,343.75 - 593.75) = 750.00
...
(5) (6,000.00 * 4 / 8) - (2,843.75 - 593.75) = 750.00
(6) (6,000.00 * 5 / 8) - (3 5938,75 - 593.75 ) = 750.00

Distribution of the 2012 fiscal year charge on periods:

Month
Period 

  Reference
Annual depreciation charge

 Net  
Value 

Periodic charge  

 Depreciation total

 01/2012

 (1) 6,000.00

 1,656.25

 (2) 750.00

   750.00

 02/2012

      6,000.00

    593.75

          750.00

 1,500.00

 03/2012

      6,000.00

    156.25

 (3) 156.25

 1,656.25

 04/2012

      6,000.00

       0.00

             0.00

 1,656.25

(1) 12,000.00 * 0.5 * 1.00 = 6,000.00
(2) (6,000.00 * 1 / 8) -0 = - 750.00
(3) On the last period, the periodic depreciation charge equals the net value.


MD - Polish declining

This depreciation method is used in Poland.

 

SEEWARNING When the acquisition date of the asset is prior to the current fiscal year, it is not possible to re-calculate the depreciation total of the previous closed fiscal years. The depreciation total must always be specified by entry (or import) during the asset creation.

Depreciation origin

It is equal to the first day of the next month specified in the depreciation start date, except when the depreciation start date corresponds to the first day of a month, in which case the depreciation will start to that date.

Examples :

Depreciation start date

Start point

01/01/2010

01/01/2010

15/01/2010

01/02/2010

Duration

The duration can be entered by the user.
It must be specified in years and year thousandths, or in number of months (by right-click option).
Example : 6,666 or 6,667 for a duration of 6 years 2/3.

The entered duration must correspond to an integer number of months. Otherwise, the decimal part of the duration is corrected according to the table below. 

SEEINFO  The Duration in months right click option, available in the Duration field, makes it possible to enter the duration directly in months. This duration is then automatically converted into years and year thousandths.

Month 

Start range

End range

Correction

 0

 0

0.041

0

 1

 0.042

0.125

0.083

 2

 0.126

0.208

 0.167

 3

 0.209

0.291

0.25

 4

 0.292

0.375

0.333

 5

 0.376

0.458

0.417

 6

 0.459

 0.541

 0.50

 7

 0.542

0.625

0.583

 8

 0.626

0.708

0.667

 9

 0.709

0.791

0.75

 10

 0.792

0.875

0.833

 11

 0.876

0.958

0.917

 12

 0.959

1.041

1

SEEWARNING The user can also enter the rate. In this case, the rate comes before the entered duration is terms of priority.

Rate

The depreciation rate can be entered by the user in the form of a coefficient with a 6-decimal precision.

Example : 0.333333 

SEEINFO It is possible to enter either the rate, the duration, or both.
When entered, the rate is forced and comes before the duration.

  • When the duration is entered only, the rate is determined based on the duration, as follows: (1 / duration in months) * acceleration factor
    The displayed rate corresponds to the rate thus calculated, rounded to the 6th decimal digit.
    The non-rounded rate is the one used for the calculation.
     
  • When the rate is forced, the duration (calculated as follows: 1 / rate) is not displayed.
     

This acceleration coefficient, which part of the depreciation rate calculation, can be entered by the user or defined by associations (especially if this mode is also defined by associations). It can be modified by action Method change.

When its value is superior to 1, this coefficient increases the depreciation.
When its value is less than 1, this coefficient decreases the depreciation.

Depreciation end date

It is never determined.

Prorata temporis

In most cases, time is expressed in months.
A prorata temporis applies in the following cases:

  • During the acquisition fiscal year, if the depreciation origin is not the first day of the fiscal year. See example below.
  • During the fiscal year in which a modernization occurs. The new net value obtained after the modernization action makes it possible to calculate the new complete annual depreciation charge prorated according to the number of months between the modernization period and the fiscal year end. This amount is added to the depreciation total of previous periods of the fiscal year to determine the amount of the annual depreciation charge.
  • During the disinvestment fiscal year: the charge is calculated until the end of the month during which the disposal occurs.

SEEINFO A fiscal year must always correspond to a calendar year and be broken down into 12 periods of 1 month.

Example
  • Gross value: 9,500.00

Linear

  • Depreciation rate: 0.25 (Duration: 4 years)
  • Annual depreciation charge: 2,375.00
  • Monthly periodic depreciation charge: 197.92
     
  • Acceleration coefficient: 3

Digressive

  • Depreciation rate: 0.75 (duration: 1.333333333
  • Annual depreciation charge: 7,125.00
  • Monthly periodic depreciation charge: 593.75
  • The depreciation start date being equal to March 1st, the annual charge is prorated on the 1st fiscal year: 7,125.00 * 10/12 = 5,937.50

Special features

Seasonality

This principle is based on the definition of annual seasonality plans with months declared as active or inactive.
The reference of a seasonality plan must be specified for each asset the seasonality applies to.
It is possible for each depreciation plan, based on the MD mode, to specify if the seasonality should or should not be applied.

  • No depreciation is calculated for an inactive month.
  • The depreciation calculated for an active month depends on the defined seasonality type:
     
    Seasonality type : Increasing
    The FY depreciation charge is distributed over the active months.
     
    Seasonality type : Decreasing
    The FY depreciation charge corresponds to the total of charges of each active month. The monthly depreciation charge corresponds to 1/12th of the FY charge. The FY depreciation charge is thus calculated and decreased.
Modernization

A financial asset can be subject to a modernization (by right-clicking on the table Depreciation of the management function of Financial assets) on the current period. The modernization action is always carried out on the current period but its implementation date may be located on a closed period of the current fiscal year (in this case, the modernization is retro-active).

It can also be located on the current period, on the next period or on the first period of the next financial year, according to the depreciation plan concerned (accounting or fiscal), to the value of parameter MDRCURPER - Current period Modernization (chapter AAS, group CLC), and to the fiscal year during which the modernization occurred.
The different cases are specified in the tables below.

Notes: :

  • A modernization process modifies the depreciation basis on the fiscal and/or accounting plan. As a consequence, the results of the calculation are modified.
  • The implementation is always on the 1st day of a month.
  • If necessary, the user can choose between "next period" of the current fiscal year and "first period" of the following fiscal year (1).

Case 1

 

 

 1 fiscal year

Retro-active
Modernization
(on a closed period)

 Depreciation plan

Parameter MDRCURPER

Modernization implementation

 Accounting

 YES

 Current period

 Current period

 NO

 Next Period or
Next FY
(Default Value)
(1)

 Current period

 Fiscal plan

 

 Next Period
(Default Value)
 or
Next FY
(1)

 Current period

Case 2

 

 

 Fiscal years on which
is applied
the declining mode

Retro-active
Modernization
(on a closed period)

 Depreciation plan

Parameter MDRCURPER

Modernization implementation

 Accounting

 YES

 Current period

 Current period

 NO

 Next FY

Next FY

 Fiscal plan

 

 Next Period
or
Next FY
(Default Value)
(1)

 Next FY

Case 3 

 

 

 Fiscal years on
which is applied
the linear mode

Retro-active
Modernization
(on a closed period)

 Depreciation plan

Parameter MDRCURPER

Modernization implementation

 Accounting

 YES

 Current period

 Current period

 NO

 Next Period
or
Next FY
(Default Value)
(1)

 Current period

 Fiscal plan

 

 Next Period
or
Next FY
(Default Value)
(1)

 Current period

 Case 4 

 

 

 Asset totally
depreciated

Retro-active
Modernization
(on a closed period)

 Depreciation plan

Parameter MDRCURPER

Modernization implementation

 Accounting

 YES

 Current period

 Current period

 NO

 Next Period or
Next FY
(Default Value)
(1)

 Current period

 Fiscal plan

 

 Next Period or
Next FY
(Default Value)
(1)

 Current period

SEEINFO Important Notes:

  • It will only be possible to account for the impact of modernization on the depreciation plan after closing the period previous to the one during which the modernization occurred. As long as a modernization is in progress, no business action (change of method, depreciation, revaluation) is authorized.
  • It is not possible to perform 2 modernizations with identical implementation dates but different periods: in this case, it will be necessary to cancel the first modernization before performing the second one.
  • If necessary, a retro-active modernization must be superior to the last business action performed. It will take effect in the current period.

Depreciation charges

The FY charge is equal to:

Net Depreciation Value * Rate * Acceleration coefficient
Number of active months for depreciation (1) / Number of active months of the Fiscal year

  • The result is rounded to 2 decimal digits (for instance: 1.555 is rounded to 1.56 and 1.554 is rounded to 1.55).
  • On the last depreciation fiscal year, the FY charge will be equal to the net value of the period start.
  • (1) The number of active months for depreciation corresponds to the number of active months included in the following range:

[Max (Depreciation start date, Fiscal year start date, Modernization start date), Min (Fiscal year end date, disposal date)]

Notes: :
- Net depreciable value = Net value – Residual value

Distribution of the fiscal year charge on the periods

The FY depreciation charge is distributed over the periods. This distribution is applied according to the following rule:

Period charge = Reference annual charge
                            *( Σ p1 to pc (Number of active days for depreciation in the period )
                             / Number of months in the fiscal year
                             - Depreciation totals of previous periods of the FY (2)

p1 to pc = from the 1st active period for depreciation in the fiscal year (1), to the current period included.

(1) The first active period for depreciation corresponds to the next period having the greater date:
- Depreciation start date
- Fiscal year start date
- Modernization date

(2) In case of modernization, the FY depreciation total of periods previous to the modernization are reduced to the depreciation total before the the current period.

The depreciation of the last period equals the net value.

..\FCT\SEEINFO For this depreciation method, the period weight is not taken into account.

 

Examples

1st example: without seasonality plan and modernization
  • Depreciation basis: 9,500.00
  • Residual value: 0
  • Value for depreciation: 9,500.00
  • Depreciation rate: 0.25 (Duration: 4 years)
  • Acceleration coefficient: 3
  • Purchase date: 2/3/2010
  • Depreciation start date: 3/1/2010
  • Depreciation end date: ----
  • No seasonality plan: 12 active periods

Distribution of the depreciation on fiscal years:

Fiscal year 

Reference
Annual depreciation charge 

Net value

Annual depreciation charge

 Depreciation total

 2010

 (1) 1,979.17

 9,500.00

 (3) 5,937.50

 5,937.50

 2011

 (2) 2,375.00

 3,562.50

 (4) 2,671.88

 8,609.38

 2012

       2,375.00

    890.62

 (5) 890.62

 9,500.00

 2013

       2,375.00

       0.00

            0.00

 9,500.00

(1) (9,500.00 * 0.25 ) (10 / 12) = 1,979.17
(2) (9,500.00 * 0.25 ) = 2,375.00
(3) 9,500.00 * 0.25 * 3 * (10 / 12) = 5,937.50 > 1,979.17
(4) 3,562.50 * 0.25 * 3 * (12 / 12) = 2,671.88 > 2,375.00
(5) 890.62 * 0.25 * 3 * (12/12) = 667.97 < 2,375.00 . The net value is less than 2,375.00: on the depreciation-end FY, the FY depreciation charge is equal to the net value.

Distribution of the 2010 fiscal year charge on periods:

 Month
Period

 Reference
Annual depreciation charge

 Net value

 Depreciation charge
by period

 Total
of depreciation

 03/2010

 (1) 1,979.17

 9,500.00

 (2) 593.75

       593.75

 04/2010

      2,375.00

 8,906.25

 (3) 593.75

     1,187.50

 05/2010

      2,375.00

 8,312.50

 (4) 593.75

    1,781.25

 06/2010

      2,375.00

 7,718.75

      593.75

    2,375.00

 07/2010

      2,375.00

 7,125.00

      593.75

    2,968.75

 08/2010

      2,375.00

 6,531.25

      593.75

    3,562.50

 09/2010

      2,375.00

 5,937.50

      593.75

    4,156.25

 10/2010

      2,375.00

 5,343.75

      593.75

    4,750.00

 11/2010

      2,375.00

4,750.00

 (5) 593.75

    5,343.75

 12/2010

      2,375.00

 4,156.25

 (6) 593.75

    5,937.50

(1) (9,500.00 * 0.25 ) (10 * 12) = 1,979.17
(2) (5,937.50 * 1 / 10) - 0 = 593.75
(3) (5,937.50 * 2 / 10) - 593.75 = 593.75
(4) (5,937.50 * 3 / 10) - 1,187.50 = 593.75
...
(5) (5,937.50 * 8 / 10) - 4,750.00 = 593.75
(6) (5,937.50 * 10 / 10) - 5,343.75 = 593.75

Distribution of the 2012 fiscal year charge on periods:

 Month
Period

 Reference
Annual depreciation charge

 Net value

 Depreciation charge
by period

 Total
of depreciation

 01/2012

 (1) 2,375.00

 890.62

 (2) 197.92

      197.92

 02/2012

      2,375.00

 692.70

 (3) 197.91

      395.83

 03/2012

      2,375.00

  494.79

      197.92

      593.75

 04/2012

      2,375.00

  296.87

      197.92

      791.67

05/2012

      2,375.00

   98.95

 (4) 98.95

      890.62

06/2012

      2,375.00

    0.00

         0.00

      890.62

(1) (9,500.00 * 0.25 ) = 2,375.00
(2) (2,375.00 * 1 / 12) -0 = - 197.92
(3) On the last period, the periodic depreciation equals the net value. 98.95

2nd example: without seasonality plan but with modernization
  • Depreciation basis: 9,500.00
  • Residual value: 0
  • Value for depreciation: 9,500.00
  • Depreciation rate: 0.25 (Duration: 4 years)
  • Acceleration coefficient: 3
  • Purchase date: 2/3/2010
  • Depreciation start date: 3/1/2010
  • Depreciation end date: ----
  • No seasonality plan: 12 active periods
  • Modernization on the 01/03/2010 with effective date on 01/04/2010
  • Modernized basis: 12,000.00
    Variance: 2,500.00 

Distribution of the depreciation on fiscal years:

Fiscal year 

Reference
Annual depreciation charge 

Net value

Annual depreciation charge

 Depreciation total

 2010

 (1) 3,000.00

 12,000.00

 (2) 7,343.75

  7,343.75

 2011

       3,000.00

 4,656.25

 (3) 3,492.19

10,835.94

 2012

       3,000.00

 1,164.06

 (4) 1,164.06

12,000.00

 2013

       3,000.00

       0.00

             0.00

12,000.00

(1) (12,000.00 * 0.25 ) = 3,000.00
(2) 12,000.00 * 0.75 * (9 / 12) + 593.75 = 7,343.75
(3) 4,656.25 * 0.75 * (12 / 12) = 3,492.19
(4) 1,164.06 * 0.75 * (12/12) = 873.06 < 3,000.00 . The net value is less than 3,000.00: on the depreciation-end FY, the FY depreciation charge is equal to the net value.
 

Distribution of the 2010 fiscal year charge on periods:

Month
Period 

 Reference
Annual depreciation charge 

 Net value

Periodic charge 

 Depreciation total

 03/2010

(1) 1,979.17

 9,500.00

 (3) 593.75

       593.75

 04/2010

(2) 3,000.00

 11,406.25

 (4) 750.00

     1,343.75

 05/2010

      3,000.00

 10,656.25

 (5) 750.00

    2,093.75

 06/2010

      3,000.00

  9,906.25

      750.00

    2,843.75

 07/2010

      3,000.00

  9,156.25

      750.00

    3,593.75

 08/2010

      3,000.00

  8,406.25

      750.00

    4,343.75

 09/2010

      3,000.00

  7,656.25

      750.00

    5,093.75

 10/2010

      3,000.00

  6,906.25

      750.00

    5,843.75

 11/2010

      3,000.00

  6,156.25

 (6) 750.00

    6,593.75

 12/2010

      3,000.00

  5,406.25

 (7) 750.00

    7,343.75

(1) (9,500.00 * 0.25 * 10/12) = 1,979.17
(2) (12,000.00 * 0.25 * 12 / 12) = 3,000.00
(3) (5,937.50 * 1 / 10) - 0 = 593.75
(4) ((7,343.75 - 593.75 ) * 1 / 9) - ( 593.75 - 593.75 ) = 750.00
(5) ((7,343.75 - 593.75 ) * 2 / 9) - ( 1,343.75 - 593.75 ) = 750.00
...
(6) ((7,343.75 - 593.75 ) * 8 / 9) - ( 5,843.75 - 593.75 ) = 750.00
(7) ((7,343.75 - 593.75 ) * 9 / 9) - ( 6,593.75 - 593.75 ) = 750.00
 
Distribution of the 2012 fiscal year charge on periods:

Month
Period 

  Reference
Annual depreciation charge

  Net  
Value    

Periodic depreciation charge  

 Depreciation total

 01/2012

 (1) 3,000.00

 1,164.06

 (2)   250.00

    250.00

 02/2012

      3,000.00

   914.06

 (3)   250.00

    500.00

 03/2012

      3,000.00

   664.06

        250.00

    750.00

04/2012

      3,000.00

   414.06

        250.00

  1,000.00

05/2012

      3,000.00 

   164.06

       164.06

 1,164.06

06/2012

      3,000.00

      0.00

          0.00

 1,164.06

(1) (12,000.00 * 0.25 * 12 / 12) = 3,000.00
(2) (3,000.00 * 1 / 12) -0 = - 250.00
(3) (3,000.00 * 2 / 12) - 250.00 = 250.00
(4) On the last period, the net value is inferior to the periodic depreciation charge: this charge is then equal to the net value: 164.06