Russian standard depreciation method description
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 Russian legislation.
- LR - Russian straight-line
- DR - Russian declining
- CR - Russian constant
- SR - Russian softy
The other methods are described in appendix documentations, which can be accessed from the documentation on the depreciation methods common to all legislations.
LR - Russian straight-line
This straight-line depreciation method is used in Russia.
Depreciation origin
It is equal to the 1st day of the month that follows the one of the depreciation start date, unless the depreciation start date corresponds to the 1st day of a month, in which case the depreciation starts on that date.
Examples:
|
Depreciation start date |
Depreciation origin |
|
01/01/2010 |
01/01/2010 |
|
15/01/2010 |
01/02/2010 |
Duration
The duration is expressed in years and thousandths of years.
Example: 6.666 or 6.667 for a duration of 6 years 2/3.
This duration must be a whole number of months. Otherwise, the decimal part of the duration is adjusted according to the table below.
The right-click option Duration in months accessible from the field titled Duration can be used to enter the duration directly in months; it is then automatically converted into years and thousandths of years.
The duration entered by the user is used by Sage X3 to determine the depreciation rate and the depreciation end date.
|
Months |
Starting range |
Ending range |
Adjustment |
|
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 |
Rate
The depreciation rate cannot be entered by the user. It is automatically calculated, as follows: (1 / duration in months) * acceleration coefficient.
The rate displayed corresponds to the rate calculated, rounded to 6 decimals.
The non-rounded rate is the one used for calculation; it corresponds to a monthly depreciation rate.
The acceleration coefficient used in the calculation of the depreciation rate can be entered by the user or defined by associations (for instance if the mode is itself defined by associations). It can be modified via the Method change action.
If this value is greater than 1, this coefficient accelerates the depreciation rate.
If this value is less than 1, this coefficient decelerates the depreciation rate.
Depreciation end date
It is determined as follows:
Depreciation start date + number of depreciation months (1) + number of months of stop
This depreciation end date must correspond to the last day of the month.
(1) number of depreciation months = depreciation duration * (1 / acceleration coefficient) * (number of active months according to seasonality / 12). The result is rounded to the larger whole number.
Prorata temporis
The time is expressed in months. A prorata temporis always expressed in months applies in the following cases:
-
During the acquisition fiscal year, if the depreciation start date is not the 1st day of the fiscal year.
-
If the duration of a fiscal year differs from 1 year.
-
During the disinvestment fiscal year: the charge is calculated until the last day of the month that follows the disposal date.
A fiscal year must correspond to a calendar year and be divided into 12 periods of 1 month each.
Specific rules
For this depreciation method, a specific rule is available:
- Bonus
This rule can be specified only on the Fiscal plan. In this case, an exceptional depreciation rate can be specified.
A bonus is calculated if the launch date of the asset is later than or equal to 01/01/2008.
Bonus = (Gross value * Exceptional depreciation rate).
In the case of a disposal 5 years before the launch date for a Fiscal plan that possesses a Bonus, an additional charge is observed in the disposal fiscal year and allocated in the disposal period. This charge corresponds to the difference between the depreciation as calculated with bonus and the depreciation if it were calculated without bonus. To determine this additional allocation, it is necessary that the method of the minimum plan be identical to that of the fiscal plan bonus excluded.
Specificities
Seasonality
This principle is based on the definition of seasonality annual plans whose months are declared active or inactive.
- No depreciation is calculated for an inactive month.
- The reference of a seasonality plan must be specified for each asset for which the seasonality applies.
Depreciation charge
- Calculation of the monthly charge
(Depreciable value * Monthly depreciation rate * 12) / Number of active months in the fiscal year
The number of active months in the fiscal year is equal to the number of months set as active in the seasonality plan. If no seasonality plan is specified or if the seasonality is not to be applied to the calculated plan, the number of active months is equal to 12.
- Calculation of the fiscal year charge
(Monthly charge * 12) * prorata temporis
A prorata temporis in months is applied in the following cases:
- The Depreciation start date is beyond the fiscal year start date.
- The Fiscal year duration differs from 12 months.
- The Disposal date of the asset is in the interval [Fiscal year start date – Fiscal year end date].
The following are excluded from the prorata temporis:
- The months of the seasonality plan that are not active in the period, if the seasonality is to be applied for the calculated plan.
- The months of the seasonality plan that are active in the period that was subjected to a depreciation stop.
If the depreciation end date is earlier than or equal to the fiscal year end date, the fiscal year charge will automatically be loaded with the net depreciable value, so as to close the depreciation.
Depreciation stop:
An action can be performed to stop or resume the depreciation of the Accounting and fiscal plans. In such a case, the depreciation is equal to 0 until it is resumed. As a consequence, the depreciation end is shifted.
Notes:
- Depreciable value = Gross value – Residual value – Bonus
- Net depreciable value = Net value – Residual value – Bonus
Distribution of the fiscal year charge on the periods
If the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods. This distribution is applied according to the following rule:
Period Charge =
Fiscal year charge
*
( Σ p1 to pc (Number of holding months in the period )
/
Σ p1 to pc (Number of holding months in the period ) )
-
Depreciation total of previous periods
p1 to pc = from the 1st holding period in the fiscal year to the current period included (1)
p1 to pf = from the 1st holding period in the fiscal year to the last holding period in the fiscal year
(1) Unless the asset is issued in the fiscal year before this current period or if it is completely depreciated in the fiscal year before this current period. The period retained is thus the minimum period among the 3 following ones:
- period of depreciation end if the Depreciation end date belongs to the interval [period start – period end]
- disposal period if the Disposal date belongs to the interval [period start – period end]
- current period
Notes:
- For this depreciation method, the period weight is not taken into account.
- A seasonality plan can be entered at asset level.
This is useful to specify which of the 12 months of the year are active months. For each depreciation plan depreciated according to the LR method, it is possible to specify whether the seasonality applies. If the seasonality applies for a plan and there is an inactive month, the charge of the period will be equal to 0.
Examples:
1st example
- Gross value: 120,000
- Residual value: 0
- Depreciation start date: 06/06/2010
- Acceleration coefficient: 1.00
- Depreciation duration: 3.5 years - Monthly rate: 0.02380952 (1/42 month *1)
- Depreciation end date: 30/12/2013
- Number of active months: 12 (no seasonality plan)
|
Fiscal year |
Net value |
Fiscal year charge |
Fiscal year total |
|
01/01/2010 – 31/12/2010 |
120,000.00 |
(1) 17,142.84 |
17,142.84 |
|
01/01/2011 – 31/12/2011 |
102,857.16 |
(2) 34,285.68 |
51,428.52 |
|
01/01/2012 – 31/12/2012 |
68,571.48 |
34,285.68 |
85,714.20 |
|
01/01/2013 – 31/12/2013 |
34,285.80 |
34,285.80 |
120,000.00 |
The monthly charge is equal to: (120,000 * 0.0238095 * 12) / 12 = 2,857.14
(1) 2,857.14 * 6 since the asset is held for only 6 months during this 1st fiscal year.
(2) 2,857.14 * 12 = 34,285.68
Periodic distribution of the fiscal year 2010 charge:
|
Period |
Number of holding |
Charge |
|
01/2010 |
0 |
0.00 |
|
02/2010 |
0 |
0.00 |
|
03/2010 |
0 |
0.00 |
|
04/2010 |
0 |
0.00 |
|
05/2010 |
0 |
0.00 |
|
06/2010 |
0 |
0.00 |
|
07/2010 |
1 |
2,857.14 |
|
08/2010 |
1 |
2,857.14 |
|
09/2010 |
1 |
2,857.14 |
|
10/2010 |
1 |
2,857.14 |
|
11/2010 |
1 |
2,857.14 |
|
12/2010 |
1 |
2,857.14 |
|
|
TOTAL |
17,142.84 |
2nd example
- Gross value: 120,000
- Residual value: 0
- Depreciation start date: 06/06/2010
- Acceleration coefficient: 1.00
- Depreciation duration: 3.5 years - Monthly rate: 0.02380952 (1/42 month *1.00)
- Depreciation end date: 30/09/2013
- Number of active months: 5 (seasonality plan: activity from May to September)
|
Fiscal year |
Net depreciable |
Fiscal year charge |
Fiscal year total |
|
01/01/2010 – 31/12/2010 |
120,000.00 |
(1) 20,571.42 |
20,571.42 |
|
01/01/2011 – 31/12/2011 |
102,857.16 |
(2) 34,285.70 |
54,857.12 |
|
01/01/2012 – 31/12/2012 |
68,571.48 |
34,285.70 |
89,142.82 |
|
01/01/2013 – 31/12/2013 |
34,285.80 |
30,857.18 |
120,000.00 |
The monthly charge is equal to: (120,000 * 0.0238095 * 12) / 5 = 6,857.14
(1) 6,857.14 * 3 since the activity lasts 3 months
(2) 6,857.14 * 5 since the activity lasts 5 months
Periodic distribution of the fiscal year 2010 charge:
|
Period |
Number of holding |
Charge |
|
01/2010 |
0 |
0.00 |
|
02/2010 |
0 |
0.00 |
|
03/2010 |
0 |
0.00 |
|
04/2010 |
0 |
0.00 |
|
05/2010 |
0 |
0.00 |
|
06/2010 |
0 |
0.00 |
|
07/2010 |
1 |
6,857.14 |
|
08/2010 |
1 |
6,857.14 |
|
09/2010 |
1 |
6,857.14 |
|
10/2010 |
1 |
0.00 |
|
11/2010 |
1 |
0.00 |
|
12/2010 |
1 |
0.00 |
|
|
TOTAL |
20,571.42 |
Periodic distribution of the fiscal year 2011 charge:
|
Period |
Number of holding |
Charge |
|
01/2010 |
0 |
0.00 |
|
02/2010 |
0 |
0.00 |
|
03/2010 |
0 |
0.00 |
|
04/2010 |
0 |
0.00 |
|
05/2010 |
0 |
6,857.14 |
|
06/2010 |
0 |
6,857.14 |
|
07/2010 |
1 |
6,857.14 |
|
08/2010 |
1 |
6,857.14 |
|
09/2010 |
1 |
6,857.14 |
|
10/2010 |
1 |
0.00 |
|
11/2010 |
1 |
0.00 |
|
12/2010 |
1 |
0.00 |
|
|
TOTAL |
34,285.70 |
DR - Russian declining
This straight-line depreciation method is used in Russia.
Depreciation origin
It is equal to the 1st day of the month that follows the one of the depreciation start date, unless the depreciation start date corresponds to the 1st day of a month, in which case the depreciation starts on that date.
Examples:
|
Depreciation start date |
Depreciation origin |
|
01/01/2010 |
01/01/2010 |
|
15/01/2010 |
01/02/2010 |
Duration
The duration is expressed in years and thousandths of years.
Example: 6,666 or 6,667 for a duration of 6 years 2/3.
This duration must be a whole number of months. Otherwise, the decimal part of the duration is adjusted according to the table below.
Notes:
- The right-click option Duration in months accessible from the field titled Duration can be used to enter the duration directly in months; it is then automatically converted into years and thousandths of years.
- The duration entered by the user is not significant. It is used by Sage X3only to determine the depreciation rate.
|
Months |
Starting range |
Ending range |
Adjustment |
|
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 |
Rate
The depreciation rate cannot be entered by the user. It is automatically calculated, as follows: (1 / duration in months) * acceleration coefficient.
The rate displayed corresponds to the rate calculated, rounded to 6 decimals.
The non-rounded rate is the one used for calculation; it corresponds to a monthly depreciation rate.
The acceleration coefficient used in the calculation of the depreciation rate can be entered by the user or defined by associations (for instance if the mode is itself defined by associations). It can be modified via the Method change action.
If this value is greater than 1, this coefficient accelerates the depreciation rate.
If this value is less than 1, this coefficient decelerates the depreciation rate.
Depreciation end date
This date cannot be calculated, since no information can be used to determine it.
Prorata temporis
The time is expressed in months. A prorata temporis always expressed in months applies in the following cases:
-
During the acquisition fiscal year, if the depreciation start date is not the 1st day of the fiscal year.
-
If the duration of a fiscal year differs from 1 year.
-
During the disinvestment fiscal year: the charge is calculated until the last day of the month that follows the disposal date.
A fiscal year must correspond to a calendar year and be divided into 12 periods of 1 month each.
Depreciation charge
- Calculation of the fiscal year charge
If the fiscal year is composed of a single period: Depreciable value * Depreciation rate
If the fiscal year is divided into months: Σ of the charges of the fiscal year periods
- Calculation of the period charge
(Net depreciable value from period start to anniversary date * depreciation rate) / 12
Example:
Anniversary date: 01/11/N
The calculation of the period charges of the months of November and December of fiscal year N and then of the months of January to October of fiscal year N+1 are based on the depreciable value at 1/11/N.
On 01/11/N+1, the charges of the months of November and December of fiscal year N+1 and of the months of January to October of fiscal year N+2 based on the depreciable value of 01/11/N+1.
Notes
- Net depreciable value = Net value – Residual value
- Anniversary net depreciable value = Net depreciable value from period start to anniversary date. This value is stored in the KBIRNBV field of the DEPREC table.
Since the anniversary occurs every 12 effective depreciation months, this net value may therefore change during the fiscal year.
- The depreciation is completed on disposal date or if the net depreciable is equal to 0.
- When the start net value becomes less than 1, the net value is closed.
Depreciation stop:
An action can be performed to stop or resume the depreciation of the plans of the Accounting and fiscal context. In such a case, the depreciation is equal to 0 until it is resumed. As a consequence, the depreciation end is shifted.
Control on job actions:
- For the Method change action: the processing of catching up the gap of the previous fiscal year is authorized only via the Period exceptional charge option.
- For the Revaluation action: only an application on Period start is authorized.
- For the Revision action: the update of Fiscal year charge is not authorized.
Examples:
1st example
- Gross value: 120,000
- Residual value: 0
- Depreciation start date: 01/11/2010
- Anniversary date: 01/11
- Acceleration coefficient: 1.00
- Depreciation duration: 3 years - Monthly rate: 0.33333333 (1/36 month *1)
- Depreciation end date: ------
Calculation of the period charges:
|
Period |
Anniversary net value |
Charge |
|
01/2010 to 10/2010 |
0 |
0.00 |
|
11/2010 |
120,000.00 |
(1) 3,333.33 |
|
12/2010 |
120,000.00 |
3,333.33 |
|
01/2011 |
120,000.00 |
3,333.33 |
|
02/2011 |
120,000.00 |
3,333.33 |
|
03/2011 |
120,000.00 |
3,333.33 |
|
04/2011 |
120,000.00 |
3,333.33 |
|
05/2011 |
120,000.00 |
3,333.33 |
|
06/2011 |
120,000.00 |
3,333.33 |
|
07/2011 |
120,000.00 |
3,333.33 |
|
08/2011 |
120,000.00 |
3,333.33 |
|
09/2011 |
120,000.00 |
3,333.33 |
|
10/2011 |
120,000.00 |
3,333.33 |
|
11/2011 |
80,000.04 |
(2) 2,222.22 |
|
12/2011 |
80,000.04 |
2,222.22 |
|
01/2012 |
80,000.04 |
2,222.22 |
|
... |
... |
... |
|
12/2039 |
... |
0.89 |
(1) Monthly charge from 01/01 to 31/10/2011: (120,000 * 0.3333333) / 12 = 3,333.33
(3) Monthly charge from 01/11 to 31/12/2011: (80,000.04 * 0.3333333) / 12 = 2,222.22
Calculation of the fiscal year charges:
|
Fiscal year |
Fiscal year charge |
Fiscal year total |
|
01/01/2010 – 31/12/2010 |
6,666.66 |
6,666.66 |
|
01/01/2011 - 31/12/2011 |
37,777.74 |
44,444.40 |
|
01/01/2012 - 31/12/2012 |
25,185.16 |
69,629.56 |
|
01/01/2013 - 31/12/2013 |
16,790.12 |
86,419.68 |
|
... |
... |
... |
|
01/01/2039 - 31/12/2039 |
0.44 |
119,999.11 |
|
01/01/2040 - 31/12/2040 |
(1) 0.89 |
120,000.00 |
(1) Since the charge becomes less than 1 on 31/12/2039, the charge is closed in 2040.
CR - Russian constant
This depreciation method is used in Russia.
Depreciation origin
It is equal to the 1st day of the month that follows the one of the depreciation start date, unless the depreciation start date corresponds to the 1st day of a month, in which case the depreciation starts on that date.
Examples:
|
Depreciation start date |
Depreciation origin |
|
01/01/2010 |
01/01/2010 |
|
15/01/2010 |
01/02/2010 |
Duration
The duration is expressed in years and thousandths of years.
Example: 6.666 or 6.667 for a duration of 6 years 2/3.
This duration must be a whole number of months. Otherwise, the decimal part of the duration is adjusted according to the table below. Notes:
- The right-click option Duration in months accessible from the field titled Duration can be used to enter the duration directly in months; it is then automatically converted into years and thousandths of years.
- The duration entered by the user is not significant. It is used by Sage X3only to determine the depreciation rate.
|
Months |
Starting range |
Ending range |
Adjustment |
|
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 |
Rate
The depreciation rate cannot be entered by the user. It is obtained from the duration expressed in months, according to the table below, to which is applied an optional acceleration coefficient:
Rate according to duration * acceleration coefficient
The rate displayed corresponds to the rate calculated, rounded to 6 decimals.
The non-rounded rate is the one used for calculation.
|
Start duration |
End duration |
Rate |
|
1 |
24 |
14.3 |
|
25 |
36 |
8.8 |
|
37 |
60 |
5.6 |
|
61 |
84 |
3.8 |
|
85 |
120 |
2.7 |
|
121 |
180 |
1.8 |
|
181 |
240 |
1.3 |
|
241 |
300 |
1 |
|
301 |
360 |
0.8 |
|
361 |
>360 |
0.7 |
The acceleration coefficient used in the calculation of the depreciation rate can be entered by the user or defined by associations (for instance if the mode is itself defined by associations). It can be modified via the Method change action.
If this value is greater than 1, this coefficient accelerates the depreciation rate.
If this value is less than 1, this coefficient decelerates the depreciation rate.
Depreciation end date
This date cannot be calculated, since no information can be used to determine it.
Prorata temporis
The time is expressed in months. A prorata temporis always expressed in months applies in the following cases:
-
During the acquisition fiscal year, if the depreciation start date is not the 1st day of the fiscal year.
-
If the duration of a fiscal year differs from 1 year.
-
During the disinvestment fiscal year: the charge is calculated until the last day of the month that follows the disposal date.
A fiscal year must correspond to a calendar year and be divided into 12 periods of 1 month each.
Specific rules
For this depreciation method, a specific rule is available:
- Bonus
This rule can be specified only on the Fiscal plan. In this case, an exceptional depreciation rate can be specified.
A bonus is calculated if the launch date of the asset is later than or equal to 01/01/2008.
Bonus = (Gross value * Exceptional depreciation rate).
In the case of a disposal 5 years before the launch date for a Fiscal plan that possesses a Bonus, an additional charge is observed in the disposal fiscal year and allocated in the disposal period. This charge corresponds to the difference between the depreciation as calculated with bonus and the depreciation if it were calculated without bonus. To determine this additional allocation, it is necessary that the method of the minimum plan be identical to that of the fiscal plan bonus excluded.
Depreciation charge
- Calculation of the fiscal year charge:
Σ of the charges of the fiscal year periods
Calculation of the period charge:
Net depreciable value at period start * depreciation rate
Notes:
- Depreciable value = Gross value – Residual value – Bonus
- Net depreciable value = Net value – Residual value – Bonus
- The depreciation is completed on disposal date or if the net depreciable is equal to 0.
- When the start net value becomes less than 1, the net value is closed.
Depreciation stop:
An action can be performed to stop or resume the depreciation of the plans of the Accounting and fiscal context. In such a case, the depreciation is equal to 0 until it is resumed. As a consequence, the depreciation end is shifted.
Control on job actions:
- For the Method change action: the processing of catching up the gap of the previous fiscal year is authorized only via the Period exceptional charge option.
- For the Revaluation action: only an application on Period start is authorized.
- For the Revision action: the update of Fiscal year charge is not authorized.
Examples:
Example
- Gross value: 120,000
- Residual value: 0
- Depreciation start date: 06/06/2010
- Depreciation duration: 3.5 years
- Monthly rate: 0.056%
- Specific rule: Bonus - exceptional depreciation rate: 0.3 (1)
Calculation of the bonus: 120,000 * 0.3 = 36,000 - Net depreciable value: 120,000 - 36,000 = 84,000
|
Period |
Depreciable |
Depreciation total |
Period charge |
Fiscal year |
|
01/06/2010 - 30/06/2010 |
84,000 |
---- |
----- |
----- |
|
01/07/2010 - 31/07/2010 |
84,000 |
---- |
4,704.00 |
|
|
01/08/2010 - 31/08/2010 |
79,296 |
4,704.00 |
4,440.58 |
|
|
01/09/2010 - 30/09/2010 |
74,855.42 |
9,144.58 |
4,191.90 |
|
|
01/10/2010 - 31/10/2010 |
70,663.52 |
13,336.48 |
3,957.16 |
|
|
01/11/2010 - 30/11/2010 |
66,706.36 |
17,293.64 |
3,735.56 |
|
|
12/1/2010 - 31/12/2010 |
62,970.80 |
21,029.20 |
3,526.36 |
|
|
01/01/2011 - 31/12/2011 |
59,444.44 |
24,555.56 |
3,328.89 |
24,555.56 |
|
01/02/2011 - 28/02/2011 |
56,115.51 |
27,884.45 |
3,142.47 |
|
|
01/03/2011 - 31/03/2011 |
52,973.08 |
31,026.92 |
2,966.49 |
|
|
01/04/2011 - 30/04/2011 |
50,006.59 |
33,993.41 |
2,800.37 |
|
|
01/05/2011 - 31/05/2011 |
47,206.22 |
36,793.78 |
2,643.55 |
|
|
01/06/2011 - 30/06/2011 |
44,562.67 |
39,437.33 |
2,495.51 |
|
|
01/07/2011 - 31/07/2011 |
42,067.16 |
41,923.84 |
2,355.76 |
|
|
01/08/2011 - 31/08/2011 |
39,711.40 |
44,288.60 |
2,223.84 |
|
|
01/09/2011 - 30/09/2011 |
37,487.56 |
46,512.44 |
2,099.30 |
|
|
01/10/2011 - 31/10/2011 |
35,388.26 |
48,611.74 |
1,981.74 |
|
|
01/11/2011 - 30/11/2011 |
33,406.52 |
50,593.48 |
1,870.77 |
|
|
01/12/2011 - 31/12/2011 |
31,535.75 |
52,464.25 |
1,766.00 |
29,674.69 |
|
01/01/2012 - 31/01/2012 |
29,769.75 |
54,230.25 |
1,667.11 |
|
|
... |
... |
... |
... |
|
SR - Sum-of-Years' Digits Russian
This depreciation method is used in Russia.
Depreciation origin
It is systematically equal to the 1st day of the month that follows the one of the depreciation start date, unless the depreciation start date corresponds to the 1st day of the month, in which case the depreciation starts on that date.
Duration
The duration is expressed in years and thousandths of years.
Example: 6.666 or 6.667 for a duration of 6 years 2/3.
This duration must be a whole number of months. Otherwise, the decimal part of the duration is adjusted according to the table below.
The right-click option Duration in months accessible from the field titled Duration can be used to enter the duration directly in months; it is then automatically converted into years and thousandths of years.
The duration entered by the user is used by Sage X3 to determine the depreciation rate and the depreciation end date.
|
Months |
Starting range |
Ending range |
Adjustment |
|
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 |
Rate
This declining rate cannot be entered by the user and is determined as follows:
Value of the year in question / sum of the figures of the years in the depreciation duration + Decimal part expressed in months / 12
Example:
For a depreciation period of 5.27 years, the duration is reduced to 5.25.
The rate applied for the 2nd year is 4 / 15.25. It is thus equal to 0.2622951.
Indeed:
- the value of the 2nd year equals 4
- the sum of the data for the five years is: 5 + 4 + 3 + 2 + 1 = 15
- the decimal part of 0.25 expressed in months / 12 = 3 months / 12 thus: 0.25
If the depreciation starts during a fiscal year or if the fiscal year duration differs from 12 months, two different depreciation rates can be applied in the same fiscal year. See Depreciation charges.
Depreciation end date
It is determined as follows:
Depreciation origin + Depreciation duration + Number of stop months
Examples of calculations of depreciation end dates:
|
Depreciation origin |
Duration |
Stop |
End date |
|
01/01/2005 |
5 years |
0 |
31/12/2009 |
|
01/01/2005 |
5 years |
6 months |
30/06/2010 |
|
01/07/2005 |
5 years |
0 |
30/06/2010 |
|
01/07/2005 |
5 years |
4 months |
31/10/2010 |
Prorata temporis
In most cases, the time is expressed in months.
A prorata temporis is applied in the following cases:
- During the acquisition fiscal year, if the depreciation origin is not the 1st day of the fiscal year.
- If the fiscal year duration differs from 1 year.
- During the disinvestment fiscal year: the charge is calculated until the end of the month that follows the disposal date.
A fiscal year must correspond to a calendar year and be divided into 12 periods of 1 month each.
Depreciation charge
Depreciation stop:
An action can be performed to stop or resume the depreciation of the plans of the Accounting and fiscal context. In such a case, the depreciation is equal to 0 until it is resumed. As a consequence, the depreciation end is shifted.
A fiscal year charge is calculated as follows:
Charge = (Depreciable value * Rate 1) * prorata temporis 1
+ (Depreciable value * Rate 2) * prorata temporis 2
- Depreciable value = (Gross value – Residual value)
- Rate 1 = Depreciable rate applied in 1st part of fiscal year
- Rate 2 = Possible depreciation rate applied in 2nd part of fiscal year
- (1) Prorata temporis 1 =
Number of months in the period [max (Fiscal year start date, Depreciation start date)
– min (End date of Rate 1 application, Fiscal year end date, Depreciation end date, Disposal date)] / 12 - Prorata temporis 2 =
Number of months in the period [Start date of Rate 2 application – min (Fiscal year end date, Depreciation end date, Disposal date)] / 12
Notes:
- For the disinvestment fiscal year, only one depreciation rate applies, unless the fiscal year is longer than 12 months and the asset was held for longer than 12 months during it.
- For each following fiscal year, two depreciation rates apply, each for a number of months defined in Prorata temporis 1 and Prorata temporis 2.
- In order to have only one depreciation rate apply, two conditions must be met: each fiscal year must be equal to 12 months, and the depreciation origin must be the 1st day of the fiscal year.
Example: asset acquired on 01/07/2005 and depreciated over 5 years. The rates applied to the following fiscal years are:
Fiscal year | Rate 1 | Rate 2 |
01/01/2005 - 31/12/2005 | 5/15th for 6 months |
|
01/01/2006 - 31/12/2006 | 5/15th for 6 months | 4/15th for 6 months |
01/01/2007 - 31/12/2007 | 4/15th for 6 months | 3/15th for 6 months |
01/01/2008 - 31/12/2008 | 3/15th for 6 months | 2/15th for 6 months |
01/01/2009 - 31/12/2009 | 2/15th for 6 months | 1/15th for 6 months |
01/01/2010 - 31/12/2010 | 1/15th for 6 months |
|
Distribution of the fiscal year charge on the periods
If the fiscal year is divided into several periods, the fiscal year charge is distributed over these periods. This distribution is applied according to the following rule:
Period Charge =
(Depreciable value * Rate 1 * Prorata 1) + (Depreciable value * Rate 2 * Prorata 2)
- Depreciation total of previous periods
- Prorata temporis 1 =
Number of months in the period [max (Fiscal year start date, Depreciation start date)
– min (End date of Rate 1 application, Current period end date, Depreciation end date, Disposal date)] / 12 - Prorata temporis 2 =
Number of months in the period [Start date of Rate 2 application – min (Current period end date, Depreciation end date, Disposal date)] / 12
Notes:
- In some cases, depending on the division of the fiscal year into periods, a period may be subjected to only one depreciation rate.
- For this depreciation method, period weight is not taken into account: it is the effective duration of each period that is taken into account.
Examples:
1st example
- Gross value: 120,000
- Residual value: 0
- Depreciation start date: 01/08/2010
- Depreciation duration: 2.5 years
- Prorata type: months
Fiscal year | Net depreciable value | Fiscal year charge | Fiscal year total |
01/01/2010 - 31/12/2010 | 120,000.00 | (1) 28,571.43 | 28,571.43 |
01/01/2011 - 31/12/2011 | 91,428.57 | (2) 54,285.71 | 82,857.14 |
01/01/2012 - 31/12/2012 | 37,142.86 | (3) 34,285.72 | 117,142.86 |
01/01/2013 - 31/12/2013 | 2,857.14 | (4) 2,857.14 | 120,000.00 |
(1) 120,000.00 * 2 / 3.5 * 5 / 12 = 28,571.43
(2) (120,000 * 2 / 3.5 * 7 / 12) + (120,000 * 1 / 3.5 * 5 / 12) = 40,000.00 + 14,285.71 = 54,285.71
(3) (120,000 * 1 / 3.5 * 7 / 12) + (17,142.86 * 5 / 6) = 20,000.00 + 14,285.72 = 34,285.72
17,142.86 = Net value on 01/08/2012: 120,000 - 82,857.14 - 20,000.00
(4) 120,000 - 117,142.86 = 2,857.14
2nd example
- Gross value: 10,000
- Residual value: 0
- Depreciation start date: 07/01/2010 adjusted on 01/02/2010
- Depreciation duration: 5 years
- Prorata type: months
Fiscal year | Net depreciable value | Fiscal year charge | Fiscal year total |
01/01/2010 - 31/12/2010 | 10,000.00 | (1) 3,055.56 | 3,055.56 |
01/01/2011 - 31/12/2011 | 6,944.44 | (2) 2,722.22 | 5,777.78 |
01/01/2012 - 31/12/2012 | 4,222.22 | (3) 2,055.55 | 7,833.33 |
01/01/2013 - 31/12/2013 | 2,166.67 | (4) 1,388.89 | 9,222.22 |
01/01/2014 - 31/12/2014 | 777.78 | (5) 722.22 | 9,944.44 |
01/01/2015 - 31/12/2015 | 55.56 | (6) 55.56 | 10,000.00 |
(1) 10,000.00 * 5 / 15 * 11 / 12 = 3,055.56
(2) (10,000.00 * 5 / 15 * 1 / 12 ) + (10,000.00 * 4 / 15 * 11 / 12 ) = 277.78 + 2,444.44 = 2,722.22
(3) (10,000.00 * 4 / 15 * 1 / 12 ) + (10,000.00 * 3 / 15 * 11 / 12 ) = 222.22 + 1,833.33
(4) (10,000.00 * 3 / 15 * 1 / 12 ) + (10,000.00 * 2 / 15 * 11 / 12 ) = 166.67 + 1,222.22
(5) (10,000.00 * 2 / 15 * 1 / 12 ) + (10,000.00 * 1 / 15 * 11 / 12 ) = 111.11 + 611.11
(6) 10,000 - 9,944.44 = 55.56