Turkish standard depreciation method description

TL - Turkish Linear

It is the linear depreciation method applied according to Turkish rules.

The depreciation starting point

The depreciation is calculated from the day of effective first use of each depreciable element onwards; hence, Sage X3 retains the day specified as depreciation start date.

Duration

The user can specify either the duration, or the rate.
If the duration is specified by the user, Sage X3 automatically determines the depreciation rate as well as the depreciation end date based on this duration. If the rate is specified, the depreciation duration is automatically determined based on the entered rate.

The duration is expressed in years and hundredths of years.
For example : 6.66 or 6.67 for a duration of 6 years and 2/3. 

Rate

The rate can be specified by the user.
In this case, Sage X3 determines the depreciation duration based on the rate entered. This determined duration will be used to calculate the depreciation end date.

In the case when the depreciation rate is not specified by the user, Sage X3 will determine it as follows: 1 / duration

Depreciation end date

The end date depends on whether the Specific rule is applied or not: 1st fiscal year counted for 1 year.
This rule, specified at asset depreciation schedule level, is set by the user or comes from the application of section associations.

• If this rule is not applied, the end date is equal to:
  depreciation launch day + depreciation duration.
• When this rule is applied, the depreciation end date is calculated as if the asset were depreciated with method Turkish declining.

A few examples made without application of the rule: 1st fiscal year counted for 1 year.

Start date	Duration	End date
01/01/2005	5 years	31/12/09
01/07/2005	5 years	30/06/2010
14/03/2005	5 years	13/03/2010
01/01/2005	6.66	31/08/2011
01/07/2005	3.33	31/10/2008
14/03/2005	3.33	13/07/2008

 

Prorata temporis

Time is expressed in months or days depending on what the user selects at the depreciation plan level.

A prorata temporis is applied in the following cases:

• During the acquisition fiscal year, if the depreciation start date is not the first day of the fiscal year.
• If the fiscal year duration differs from 1 year.
• During the disinvestment fiscal year in order to determine the depreciation end date.

Specific rules

For this depreciation method, 2 specific rules are available:

1st fiscal year counted for 1 year.
This rule affects the determination of theDepreciation end date.

Depreciation charge

The fiscal year charge is equal to:
Depreciable value * Depreciation rate * prorata temporis in days or in months

Distribution of the fiscal year charge on 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 (pc) = 
Fiscal year charge *

[ S p1 to pc ( (Period weight / Number of days in the period) * Number of holding days in the period )
/
S p1 to pf ( (Period weight / Number of days in the period) * Number of holding days 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

Examples

1st example 

• Gross value: 10,000
• Residual value: 0
•  Depreciation start date: 05/11/2005
• Depreciation duration: 5 years. Rate: 20% --> Depreciation end date: 04/11/2010
•  Specificity: the second fiscal year has a duration of 6 months
  

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10,000.00	(1)  312.33	312.3
01/01/2006 – 30/06/2006	9,687.67	(2) 991.78	1,304.11
01/07/2006 – 30/06/2007	8,695.89	2,000.00	3,304.11
01/07/2007 – 30/06/2008	6,695.89	2,000.00	5,304.11
01/07/2008 – 30/06/2009	4,695.89	2,000.00	7,304.11
01/07/2009 – 30/06/2010	2,695.89	2,000.00	9,304.11
01/07/2010 – 30/06/2011	695.89	695.89	10,000.00

(1) 10,000.00 * 20% * 57/365 since the asset is held only for 57 days during this 1st fiscal year.

(2) 10,000.00 * 20% * 181/365 since the duration of this 2nd fiscal year is 6 months = 181 days.

2nd example 

• Gross value: 10,000
• Residual value: 0
• Depreciation start date: 28/02/2005
• Depreciation duration: 6.67 years. Rate: 15 % --> Depreciation end date: 27/10/2011

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10,000.00	(1) 1,261.64	1,261.64
1/1/2006 – 31/12/2006	8,738.36	(2) 1,500.00	2,761.64
01/01/2007 – 31/12/2007	7,238.36	1,500.00	4,261.64
01/01/2008 – 31/12/2008	5,738.36	1,500.00	5,761.64
01/01/2009 – 31/12/2009	4,238.36	1,500.00	7,261.64
01/01/2010 – 31/12/2010	2,738.36	1,500.00	8,761.64
01/01/2011 – 31/12/2011	1,238.36	1,238.36	10,000.00

(1) 10,000.00 * 15% * 307/365 since the asset has been held for 307 days during this 1st fiscal year.

(2) 10,000.00 * 15% = 1,500.00

3rd example 

• Gross value: 10,000
• Residual value: 0
•  Depreciation start date: 28/02/2005
• Depreciation duration: 6.67 years. Rate: 15 % --> Depreciation end date: 27/10/2011
• Disposal date: 04/05/2008

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10,000.00	(1) 1,261.64	1,261.64
1/1/2006 – 31/12/2006	8,738.36	1,500.00	2,761.64
01/01/2007 – 31/12/2007	7,238.36	1,500.00	4,261.64
01/01/2008 – 31/12/2008	5,738.36	(2) 512.30	4,773.94

(1) 10,000,00 * 15% * 307/365 since the asset has been held for 307 days during this 1st fiscal year.
(2) 10 000,00 * 15% * 125/366 = 512.30 for the asset has been held for 125 weeks during this fiscal year

4th example 

• Gross value: 10,000
• Residual value: 0
• Depreciation start date: 01/06/2005
• Depreciation duration: 4 years. Rate: 25 % --> Depreciation end date: 31/05/2009
   

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10,000.00	(1) 1,465.75	1,465.75
1/1/2006 – 31/12/2006	8,534.25	2,500.00	3,965.75
01/01/2007 – 31/12/2007	6,034.25	2,500.00	6,465.75
01/01/2008 – 31/12/2008	3,534.25	2,500.00	8,965.75
01/01/2009 – 31/12/2009	1,034.25	1,034.25	10,000.00

(1) 10,000.00 * 25% * 214/365 since the asset has been held for 214 days during this 1st fiscal year.  

Distribution of the 2005 fiscal year charge based on the weight of the periods:

Period	Number of days / Weight	Number of holding days	Depreciation charge
01/01/2005 – 31/03/2005	90 / 90	0	0.00
01/04/2005 – 30/06/2005	91 / 90	30	(2) 242.05
01/07/2005 – 30/09/2005	92 / 60	92	(3) 489.48
10/1/2005 – 12/30/2005	92 / 90	92	(4) 734.22
Fiscal year 2005 total			1,465.75

(2)  1,465.75 * (90 / 91 * 30) / [ (90 / 91 * 30) + (60 / 92 * 92) + (90 / 92 * 92) ] = 242,05  

(3)  1,465.75 * [ (90 / 91 * 30) + (60 / 92 * 92) ] 
      / [ (90 / 91 * 30) + (60 / 92 * 92) + (90 / 92 * 92) ] = 731.53 - 242.05 = 489.48

 (4)  1,465.75 * [ (90 / 91 * 30) + (60 / 92 * 92) + (90 / 92 * 92) ] 
        / [ (90 / 91 * 30) + (60 / 92 * 92) + (90 / 92 * 92) ] = 1,465.75 - 731.53 = 734.22

5th example with application of the Specific rule: 1st fiscal year counted for 1 year

• Gross value: 10,000
• Residual value: 0
• Depreciation start date: 01/06/2005
• Depreciation duration: 4 years. Rate: 25 % --> Depreciation end date: 31/12/08

Fiscal year	Net value	Fiscal year charge	Fiscal year total
01/01/2005 – 31/12/2005	10,000.00	(1) 1,465.75	1,465.75
1/1/2006 – 31/12/2006	8,534.25	2,500.00	3,965.75
01/01/2007 – 31/12/2007	6,034.25	2,500.00	6,465.75
01/01/2008 – 31/12/2008	3,534.25	(2) 3,534.25	10,000.00

(1) 10,000.00 * 25% * 214/365 since the asset has been held for 214 days during this 1st fiscal year.

(2) Charge = (Ne value – Residual value), that is (3,534.25 – 0.00) = 3,534.25. Taking into account the fact that the 1st 12-month fiscal year [01/01/2005 – 31/01/2005] is counted for 1 year and that there has been no fiscal year different from 12 months during the asset depreciation.

TD - Turkish declining

This declining depreciation method is used in Turkey.

Depreciation starting point

This depends on the prorata temporis type defined by the user at the depreciation plan level: 

• If prorata = Month (Month)                    -->   Depreciation start on the 1st day of the month the depreciation starts on. (1) 
• If prorata = ½ Month (Mid-Month)                    -->   Depreciation start on the middle of the month the depreciation starts on. (2)   
• If prorata = ½ quarter (Mid-Quarter)                    -->   Depreciation start on the middle of the quarter the depreciation starts on. (3)
• If prorata = ½ year (Half-Year )      -->   ½ annuity is applied to the year of acquisition (4)
  

(1) Irrespective of the day of the depreciation start date.
(2) Irrespective of the day of the depreciation start date, even if it is the 1st day of the month.
(3) Irrespective of the day of the depreciation start date, even if it is the 1st day of the quarter.
(4) Irrespective of the day of the depreciation start date and regardless of the duration of the fiscal year.

Duration

The duration is expressed in years and hundredths of years.

Examples:

• 5 for 5 years
• 3.5 for 3 years and 6 months
• 6.66 for 6 years and 8 months

Rate

The depreciation rate cannot be entered by the user. It is calculated automatically, as follows, according to an accelaration coefficient:

( 1 / duration) * acceleration coefficient

This acceleration coefficient can be entered by the user or defined by associations (especially if this method is also defined by associations). It can be modified by the action Method change.

It corresponds to the declining coefficient applied to the Turkish declining depreciation method. It can take the value:
- 1.25
- 1.50
- 1.75
- 2

Depreciation end date

It depends on the prorata temporis type:

• If prorata temporis = ½ year:
  
  Depreciation end date = 1st day of the month corresponding to the start date of the fiscal year following the acquisition year.

  + (Depreciation duration - 0.5)

  
  This leads to a last day of the month.

• If prorata temporis = month:
  
  Depreciation end date = 1st day of the month of the depreciation start date + depreciation duration
   
  This leads to a last day of a month.
• If prorata temporis = ½ month:
   
  Depreciation end date =
  1st day of the month of the depreciation start date + Depreciation duration + 0.5 month
   
  This leads to the 15th of the month.
• If prorata temporis = ½ quarter:
   
  Depreciation end date =
  1st day of the quarter of the depreciation start date + Depreciation duration + 0.5 quarter.
   
  This leads to a mid-quarter.
   

Calculation examples of ddepreciation end date:

Start date	Duration	End date
01/01/2005	3 years and ½ year	30/06/2008
14/10/2005	3.25 years and ½ year	30/09/2008
01/01/2005	5.33 and month	30/04/2010
01/01/2005	3 and ½ month	15/01/2008
08/11/2005	3.25 and ½ month	15/02/2009
01/01/2005	3 and ½ quarter	15/02/2008
08/12/2005	3 and ½ quarter	15/11/2008

Prorata temporis

If the prorata termporis type can be specified by the user or must be defined by associations when the depreciation method is also defined by associations. It can be modified by the action Method change.

The possible values are as follows:

• Prorata = month               (Month)
• Prorata = ½ month           (Mid-Month)
• Prorata = ½ quarter     (Mid-Quarter)
• Prorata = ½ year         (Half-Year)

Depreciation charge

The charge is equal to the higher of the 2 following values:

• Net depreciable value * Depreciation rate * prorata temporis
• Net depreciable value * (Holding duration in FY / Residual depreciation duration)

 Notes:

- Net depreciable value = (Net value – Residual value)

- Residual depreciation duration = duration of the period [FY start date - depreciation end date]
 
- If the depreciation end date is = to the Fiscal year enddate and if the asset is not disposed of before this depreciation end date, then the Fiscal year charge = Net depreciable value.
 
- If the Net depreciable value is greater than 0, and the residual depreciation duration is equal to 0 (when depreciation end date < FY start date), then the FYcharge = Net depreciable value in order to close the depreciation.

The charge of the disinvestment FY is calculated depending on the type of prorata temporis:

• If Prorata = ½ year, the disinvestment FY charge corresponds to the FY charge * 50%.
  This is also the case when the asset is disposed of during the depreciation end FY.
  Same goes for a disinvestment FY different from 12 months.
• If Prorata = Month, the depreciation is calculated until the end of the month prior to the disposal month, or until the disposal day when it is the last day of the month.
• If Prorata = ½ month, the charge is calculated until the middle of the disposal month: ½ a charge is kept for the disposal month.
• If Prorata = ½ quarter, the disinvestment FY charge corresponds to the FY charge * a percentage varying according to the FY disposal quarter:
   
  - 12.50% (1 ½ quarter/ 8) if Disposal date in the first quarter
  - 37.50% (3 ½ quarter/ 8) if Disposal date in the second quarter
  - 62.50% (5 ½ quarter/ 8) if Disposal date in the third quarter
  - 87.50 % (7 ½ quarter/ 8) if Disposal date in the fourth quarter
   
  This rule can be modified by Disposal rules: Disposal at the end of the previous FY and Disposal at the end of the current FY.

 In case of method change in an ongoing fiscal year (review of th duration, accelaration coefficient, prorata type, depreciation start date), the application date is systematically the FY start date: the FY charge is thus re-calculated with the new method.

Distribution of the fiscal year charge on 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:

• Prorata temporis = ½ year or month. In this case, the holding period starts on the 1st day of the month the depreciation starts on.
   
  Period charge = FY charge
                              *( Σ p1 to pc (Number of holding days in the period )
                               / Σ p1 to pf (Number of holding days in the period )
                               - Depreciation total of previous periods
• Prorata temporis 2 = ½ month or ½ quarter. In this case, the holding period starts:
   
  - either on the middle of the month the depreciation starts on, if Prorata = ½ month,
  - or on the middle of the quarter (i.e. the middle of the 2nd month of the quarter) on which the depreciation starts, if Prorata = ½ quarter.
   
  Period charge = FY charge
                              * ( Σ p1 to pc (Number of holding months in the period )
                               / Σ p1 to pf (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

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

 

Examples

1st example 

•  Gross value: 10,000
• Residual value: 0
•  Depreciation start date: 03/04/2006
• Acceleration coefficient: 2
•  Depreciation duration: 5 years  --> Rate: (1/5) * 2 = 40%
• Prorata temporis type: ½ year

The depreciation end date defined by Sage X3 is: 30/06/2011

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
1/1/2006 – 31/12/2006	10,000.00	(1) 2,000.00	2,000.00
01/01/2007 – 31/12/2007	8,000.00	(2) 3,200.00	5,200.00
01/01/2008 – 31/12/2008	4,800.00	(3) 1,920.00	7,120.00
01/01/2009 – 31/12/2009	2,880.00	(4) 1,152.00	8,272.00
01/01/2010 – 31/12/2010	1,728.00	(5) 1,152.00	9,424.00
01/01/2011 – 31/12/2011	576.00	(6) 576.00	10,000.00

(1)  10,000.00 * 40% * 50% or 6/12th = 2,000.00

(2) 8,000.00 * 40% = 3,200.00

(3) 4,800.00 * 40% = 1,920.00

(4)  2,880.00 * 40% = 1,152.00 (equal to 2,880.00 * 12 / 30 = 1,152.00)

(5)  1,728.00 * 12 / 18 = 1,152.00 as > to 1,728.00 * 40% = 691.20

(6)   576.00 * 6 / 6 = 576.00
 
If this asset disposed in 2010, regardless of the disposal date:

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
01/01/2010 – 31/12/2010	1,728.00	(7) 576.00	8,848.00

(7) 1,728.00 * 12 / 18 = 1,152.00  * 50% or 6/12th = 576,00    (50% or 6/12th as ½ a charge for the disposal FY).

If this asset disposed in 2011, regardless of the disposal date:

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
01/01/2011 – 31/12/2011	576.00	(7) 288.00	9,712.00

 (7)  576.00 * 6 / 6 = 576.00 * 50% = 288.00     (50% as ½ a charge for te disposal FY)

1st example (next):

Depreciation plan in case FYs are split into quarters

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
1/1/2006 – 31/12/2006 Quarter 1 Quarter 2 Quarter 3 Quarter 4	10,000.00	2,000.00 0.00 (1) 666.67 (2)  666.66 (3)  666.67	2,000.00
01/01/2007 – 31/12/2007 Quarter 1 Quarter 2 Quarter 3 Quarter 4	8,000.00	3,200.00 800.00 800.00 800.00 800.00	5,200.00
01/01/2008 – 31/12/2008	4,800.00	1,920.00	7,120.00
01/01/2009 – 31/12/2009	2,880.00	1,152.00	8,272.00
01/01/2010 – 31/12/2010	1,728.00	1,152.00	9,424.00
01/01/2011 – 31/12/2011 Quarter 1 Quarter 2 Quarter 3 Quarter 4	576.00	576.00 (4) 288.00 (5) 288.00 0.00 0.00	10,000.00

(1)  2,000.00 * 3/9th  = 666.67    ( 3/9th as 3 months of holding for this quarter)

(2)  2,000.00 * 6/9th  = 1,333.33 – 666.67= 666.66

(3) (2,000.00 * 9 / 2,000.00) - 1,333.33 = 666.67

(4)  576.00 * 3/6th = 288.00

(5)  576.00 * 6/6th = 576.00 – 288.00 = 288.00

 If the split of the FY is in month (monthly ends), the FY charge distribution is performed accordingly, by applying the holding prorata expressed in months: so the 1st depreciation would have been been recorded on the 04/2006.

2nd example 

•  Gross value: 10,000
• Residual value: 0
•  Depreciation start date: 03/04/2006
• Acceleration coefficient: 1.5
•  Depreciation duration: 3 years  --> Rate: (1/3) * 1.5 = 50 %
• Prorata temporis type: ½ quarter
  

The depreciation end date defined by Sage X3 is: 15/05/2009

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
1/1/2006 – 31/12/2006	10,000.00	(1) 3,125.00	3,125.00
01/01/2007 – 31/12/2007	6,875.00	(2) 3,437.50	6,562.50
01/01/2008 – 31/12/2008	3,437.50	(3) 2,500.00	9,062.50
01/01/2009 – 31/12/2009	937.50	(4) 937.50	10,000.00

(1)  10,000.00 * 50% * 5/8th  = 3,125.00 ( 5/8th = 5 ½ holding quarter out of 8)

(2) 6,875.00 * 50% = 3,437.50

(3)  3,437.50 * 8 / 11th = 2,500.00 as > to  3,43.,50 * 50% = 1,718.75

(4)  937.50 * 3/3rd = 937.50

If this asset disposed in the first quarter of 2008, regardless of the disposal date of that quarter:

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
01/01/2008 – 31/12/2008	3,437.50	(5) 312.50	6,875.00

(5) 3,437.50 * 8 / 11th = 2,500.00 * 12.50% = 312.50     (12.50% = 1 ½ quarter / 8 ½ quarter)

If this asset is disposed in the first quarter of 2009, regardless of the disposal date of that quarter:

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
01/01/2009 – 31/12/2009	937.50	(6) 585.94	9,648.44

 (6) 937.50 * 3/3rd = 937.50 * 62.5% = 585.94    (62.5% = 5 ½ quarter/ 8 ½ quarter)
 

2nd example (next):

Depreciation plan in case FYs are split into quarters

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
1/1/2006 – 31/12/2006 Quarter 1 Quarter 2 Quarter 3 Quarter 4	10,000.00	3,125.00 0.00 (1) 625.00 (2) 1,250.00 (3) 1,250.00	3,125.00
01/01/2007 – 31/12/2007	6,875.00	3,437.50	6,562.50
01/01/2008 – 31/12/2008	3,437.50	2,500.00	9,062.50
01/01/2009 – 31/12/2009 Quarter 1 Quarter 2 Quarter 3 Quarter 4	937.50	937.50 (4) 625.00 (5) 312.50 0.00 0.00	10,000.00

(1)  3,125.00 * 3/15th  = 625.00  ( 3/15th as 3 ½ holding month for this quarter)

(2)  3,125.00 * 9/15th  = 1,875.00 – 625.00= 1,250.00

(3)  3,125.00 * 15/15th  = 3,125.00 - 1,875.00 = 1,250.00

(4)  937.50 * 6/9th = 625.00   ( 6/9th as 6 ½ holding months for this quarter and 9 ½ months to reach the depreciation end date)

(5) 937.50 * 9/9th= 937.50 – 625.00 = 312.50

 ,If the split of the FY is in month (monthly ends), the FY charge distribution is performed accordingly, by applying the holding prorata expressed in ½ months:

• 05/2006 = 3,125.00 * 1/15th = 208.33
• 06/2006 = 3,125.00 * 3/15th = 625.00 – 208.33 = 416.67
•  …

3rd example 

•  Gross value: 10,000
• Residual value: 0
•  Depreciation start date: 03/04/2006
• Acceleration coefficient: 1.5
•  Depreciation duration: 3 years  --> Rate: (1/3) * 1.5 = 50 %
• Prorata temporis type: ½ month
  

The depreciation end date defined by Sage X3 is: 15/04/2009

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
1/1/2006 – 31/12/2006	10,000.00	(1) 3,541.67	3,541.67
01/01/2007 – 31/12/2007	6,458.33	(2) 3,229.17	6,770.84
01/01/2008 – 31/12/2008	3,229.16	(3) 2,499.99	9,270.83
01/01/2009 – 31/12/2009	729.17	(4) 729.17	10,000.00

(1)  10,000.00 * 50% * 17/24th  = 3,541.67         (17/24th  = 17 ½ holdding months out of 24 )

(2) 6,458.33 * 50% = 3,229.17

(3)  3,229.16 * 24 / 31st = 2,499.99 as > to  3,229.16 * 50% = 1,614.58

(4)  729.17 * 7/7th = 729.17

 If this asset is disposed on 24/03/2008 :

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
01/01/2008 – 31/12/2008	3,229.16	(5) 520.83	7,291.67

(5)  3,229.16 * 5 / 31st = 520.83             (5 / 31st = 5 ½ holding months in 2008)

If this asset is disposed on 14/07/2009:

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
01/01/2009 – 31/12/2009	729.17	(6) 729.17	10,000.00

 (6) Disposal date 14/07/2009 > Depreciation end date 15/04/2009, so no prorata temporis is to be applied due to the disposal.

3rd example (next):

Depreciation plan in case FYs are split into quarters

Fiscal year	Net depreciable value	Fiscal year charge	Fiscal year total
1/1/2006 – 31/12/2006 Quarter 1 Quarter 2 Quarter 3 Quarter 4	10,000.00	3,541.67 0.00 (1) 1,041.67 (2) 1,250.00 (3) 1,250.00	3,541.67
01/01/2007 – 31/12/2007	6,458.33	3,229.17	6,770.84
01/01/2008 – 31/12/2008	3,229.16	2,499.99	9,270.83
01/01/2009 – 31/12/2009 Quarter 1 Quarter 2 Quarter 3 Quarter 4	729.17	729.17 (4) 625.00 (5) 104.17 0.00 0.00	10,000.00

(1)  3,541.67 * 5/17th  = 1,041.67         (5/17th as 5 ½ holding months for this quarter)

(2)  3,541.67 * 11/17th  = 2,291.67 – 1,041.67= 1,250.00

(3)  3,541.67 * 17/17th  = 3,541.67 - 2,291.67 = 1,250.00

(4)  729.17 * 6/7th = 625.00        (6/7th as 6 ½ holding months for this quarter)

(5)  729.17 * 7/7th = 729.17 – 625.00 = 104.17

 If the split of the FY is in month (monthly ends), the FY charge distribution is performed accordingly, by applying the holding prorata expressed in ½ months.