A fixed asset has an acquisition cost of LCY 100,000. The Declining-Balance % field is 25. The Calculate Depreciation batch job is run biannually. The fixed asset ledger entries look like this:

Date FA Posting Type Days Amount Book Value

01/01/00

Acquisition Costs

*

100,000.00

100,000.00

06/30/00

Depreciation

180

-13,397.46

86,602.54

12/31/00

Depreciation

180

-11,602.54

75,000.00

06/30/01

Depreciation

180

-10,048.09

64,951.91

12/31/01

Depreciation

180

-8,701.91

56,250.00

* Depreciation start date

Calculation Method:

The formula for calculating the depreciation amounts is:

DA = BV * (1 - (1 -P)D)

The depreciation values are:

Date Calculation

06/30/00

DA = 100,000.00 * (1 - (1 - 0.25 )0.5) = 13,397.46

12/31/00

DA = 86,602.54 * (1 - (1 - 0.25)0.5) = 11,602.54

06/30/01

DA = 75,000.00 * (1 - (1 - 0.25)0.5) = 10,048.09

12/31/01

DA = 64,951.91 * (1 - (1 - 0.25)0.5) = 8,701.91

The calculation continues until the book value equals the final rounding amount or the salvage value that you entered.

See Also