Standard depreciation method description > Attached document: German 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 German 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.

DA - German declining

This is a declining depreciation method that differs from the German mixed declining method since the depreciation rate is systematically applied as long as the depreciation end date is not reached: the depreciation is thus closed as soon as the depreciation end date is detected.

Depreciation origin

The origin depends on the prorata temporis:

  • If the prorata temporis is expressed in months:
    The declining depreciation origin is the 1st day of the month entered in the depreciation start date.
  • If the prorata temporis is expressed in weeks:
    The declining depreciation origin is the 1st day of the 1st week of the month entered in the depreciation start date.

(specified at Depreciation method setup) is retained, the depreciation start date will automatically be loaded with the 1st day of the acquisition quarter: the depreciation will thus be determined from this date on.

Duration

It must be entered by the user, in years and hundredths of years.

Example:  6 years 2/3 = 6.66 or 6.67.

..\FCT\SEEINFO For this depreciation method, Sage X3 will round to 2 decimals all the durations entered or imported with more than 2 decimals. Ditto for residual durations calculated in the framework of intra-group sales.

Rate

The rate that can be applied for the declining depreciation calculation cannot be determined by section associations, it is automatically determined by Sage X3 as follows:

Decrease of both values: (1 / depreciation duration * digressivity factor) and Maximum rate

The digressivity factor and depreciation rate maximum are defined as follows:

Purchase period 

Coefficient 

 Maximum rate

 Until 12/31/2000

3

30%

 01/01/2001 - 31/12/2005

2

20%

 01/01/2006 - 31/12/2007

 3

30%

 01/01/2008 - 31/12/2008

1

 

 01/01/2009 - 31/12/2010

2.5

25%

From 01/01/2011 onwards

1

 

Depreciation end date

It depends on the prorata temporis type.

  • If the prorata temporis is expressed in months:
    Depreciation end date = 1st day of the month of the depreciation start date + depreciation duration in months.
    This leads to a depreciation end set at the end of the month.
     
    Example 1:

    - Depreciation start date: 05/12/2005
    - Duration: 3 years
    - Depreciation end date: 30/11/2008
     
    Example 2:

    - Depreciation start date: 01/07/2005
    - Duration: 5 years
    - Depreciation end date: 30/06/2010
  • If the prorata temporis is expressed in weeks:
    Depreciation end date = 1st day of the 1st week of the month of the depreciation start date + depreciation duration in months.
    This leads to a depreciation end set at the end of a week.
     
    Example 3:

    - Depreciation start date: 15/09/2005 (the 1st day of the 1st week in 09/05 is 05/09/2005)
    - Duration: 5 years
    - Depreciation end date: 29/08/2010

Prorata temporis

The time is expressed in months or weeks if the flag Prorata temporis in weeks is active at depreciation context level.
A prorata temporis is applied in the following cases:

  • During the acquisition fiscal year, if the depreciation originis not the 1st day of the fiscal year.
  • If a fiscal year has a duration different from 12 months or 52 weeks in the case of prorata temporis in weeks.
  • During the disinvestment fiscal year, the charge is calculated until the last day of the month entered in the disposal date (or until the last day of the last week of the month entered in the disposal date, if the flag Prorata temporis in weeks is active).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.

Depreciation charges

  • The charge of the fiscal years, except for the last one, is equal to:
                  Net depreciable value * rate * prorata temporis

    A prorata temporis in months or in days is applied in the following cases:
     
    - The Depreciation start date is beyond the fiscal year start date
    - The Duration of the fiscal year differing from 12 months (or 52 weeks in the case of prorata temporis in weeks)
    - The Disposal date of the asset is in the interval [Fiscal year start date – Fiscal year end date]
     
  • The depreciation charge of the fiscal year containing the Depreciation end date is equal to:  
                  Net depreciable value at fiscal year start * prorata temporis

    If the depreciation end date is earlier than the fiscal year end date, the fiscal year charge will automatically be loaded with the net depreciable value, so as to close the depreciation.
     
    A prorata temporis in months or in weeks is applied in the following cases:
    - The Disposal date of the asset is in the interval [Fiscal year start date – Fiscal year end date]
    and
    - The Disposal date is earlier than the Depreciation end date

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

Examples:

1st example 

  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2006
  •  Depreciation duration: 5 years
  • Rate: 30% (maximum rate applied)
  • Depreciation end date: 31/08/2011

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2006 – 31/12/2006

10,000.00

(1) 1,000.00

1,000.00

01/01/2007 – 31/12/2007

9,000.00

(2) 2,700.00

3,700.00

01/01/2008 – 31/12/2008

6,300.00

1,890.00

5,590.00

01/01/2009 – 31/12/2009

4,410.00

 1,323.00

6,913.00

01/01/2010 – 31/12/2010

3,087.00

926.10

7,839.10

01/01/2011 – 31/12/20

2,160.90

(3) 2,160.90

10,000.00

(1) 10,000.00 * 30% * 4/12 since the asset is held for only 4 months during this 1st fiscal year.

(2) 9,000.00 * 30% = 2,700.00

(3) 2,160.90 for the depreciation end date is in this fiscal year The depreciation is closed.
 

Distribution of the 2011 fiscal year charge based on the period weight in months:

Period

Number of months / Weight

Number of holding months

Depreciation charge

01/01/2011 – 31/03/2011

03 / 03

03

(4) 884.41

01/04/2011 – 30/06/2011

03 / 03

03

(5) 884.40

01/07/2011 – 30/09/2011

03 / 02

02

(6) 392.09

01/10/2011 – 31/12/2011

03 / 03

00

(7) 0.00

Fiscal year 2010 total

2,160.90

(4) 2,160.90 * (03 / 03 * 03) / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] = 884.41

(5) 2,160.90 * [(03 / 03 * 03) + (03 / 03 * 03)] / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ]  = 1,768.81 – 884.41 = 884.40

(6) 2,160.90 * [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02)] / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] = 2,160.90 – 1,768.81 = 392.09

(7) 2,160.90 * [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 02) + (03 / 03 * 0) ] = 2,160.90 – 2,160.90 = 0.00

2nd example 
  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2006
  •  Depreciation duration: 3.33 years
  • Rate: 30% (maximum rate applied)
  • Depreciation end date: 31/12/200

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2006 – 31/12/2006

10,000.00

(1) 1,000.00

1,000.00

01/01/2007 – 31/12/2007

9,000.00

(2) 2,700.00

3,700.00

01/01/2008 – 31/12/2008

6,300.00

1,890.00

5,590.00

01/01/2009 – 31/12/2009

4,410.00

(3) 4,410.00

10,000.00

(1) 10,000.00 * 30% * 4/12 since the asset is held for only 4 months during this 1st fiscal year.

(2) 9,000.00 * 30% = 2,700.00

(3) 4,410.00 since the depreciation end date is in this fiscal year The depreciation is closed.

 In case of asset issue on 14/06/2008 (depreciations are calculated until the last day of the month 06/2007):

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2006 – 31/12/2006

10,000.00

1,000.00

1,000.00

01/01/2007 – 31/12/2007

9,000.00

2,700.00

3,700.00

01/01/2008 – 31/12/2008

6,300.00

(4) 945.00

4,645.00

 (4) 6,300.00 * 30% * 6/12 = 945.00 for the asset is held only for 6 months.

3rd example 
  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2006
  •  Depreciation duration: 5 years
  • Rate: 30% (maximum rate applied)
  • Depreciation end date: 29/08/2011
  • Specificity: management of the prorata temporis in weeks

Fiscal year

Net value

Fiscal year charge

Fiscal year total

03/01/2006 – 01/01/2007

10,000.00

(1) 980.77

980.77

02/01/2007 – 31/12/2007

9,019.23

(2) 2,705.77

3,686.54

01/01/2008 – 30/12/2008

6,313.46

1,894.04

5,580.58

31/12/2008 – 28/12/2009

4,419.42

 1,325.83

6,906.41

29/12/2009 – 27/12/2010

3,093.59

928.08

7,834.49

28/12/2010 – 02/01/2012

2,165.51

(3) 2,165.51

10,000.00

(1) 10,000.00 * 30% * 17/52 since the asset is held for only 17 weeks during this 1st fiscal year.

(2) 9,019.23 * 30% = 2,705.77

(3) Charge = Net value since the depreciation end date 29/08/2011 is in the fiscal year.

Distribution of the fiscal year 2007 charge according to the period weight in weeks:

Period

Number of months / Weight

Number of holding months

Depreciation charge

02/01/2007 – 02/04/2007

13 / 13

13

(4) 732.81

03/04/2007 – 02/07/2007

13 / 13

13

(5) 732.82

03/07/2007 – 01/10/2007

13 / 09

13

(6) 507.33

02/10/2007 – 31/12/2007

13 / 13

13

(7) 732.81

Fiscal year 2006 total

2,705.77

(4) 2,705.77 * (13 / 13 * 13) / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 732.81

(5) 2,705.77 * [(13 / 13 * 13) + (13 / 13 * 13)] / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 1,465.63 – 732.81 = 732.82

(6) 2,705.77 * [((13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13)] / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 1,972.96 – 1,465.63 = 507.33

(7) 2,705.77 * [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13)] / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 2,705.77 – 1,972.96 = 732.81

4th example 
  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2006
  •  Depreciation duration: 3.33 years
  • Rate: 30 % (maximum rate applied)
  • Depreciation end date: 28/12/2009
  • Specificity: management of the prorata temporis in weeks

Fiscal year

Net value

Fiscal year charge

Fiscal year total

03/01/2006 – 01/01/2007

10,000.00

(1) 980.77

980.77

02/01/2007 – 31/12/2007

9,019.23

(2) 2,705.77

3,686.54

01/01/2008 – 30/12/2008

6,313.46

1,894.04

5,580.58

31/12/2008 – 28/12/2009

4,419.42

 (3) 4,419.42

10,000.00

(1) 10,000.00 * 30% * 17/52 since the asset is held for only 17 weeks during this 1st fiscal year.

(2) 9,019.23 * 30% = 2,705.77

(3) Charge = Net value since the depreciation end date 28/12/2009 is in the fiscal year.

 In case of asset issue on 14/07/2008 (depreciation calculated until the last day of the last week in 07/2008, that is, on 29/07/2008):

Fiscal year

Net value

Fiscal year charge

Fiscal year total

03/01/2006 – 01/01/2007

10,000.00

980.77

980.77

02/01/2007 – 31/12/2007

9,019.23

2,705.77

3,686.54

01/01/2008 – 30/12/2008

6,313.46

(4) 1,092.72

4,779.26

(4) 6 313,46 * 30% * (30 weeks / 52 weeks) = 1 092,72

5th example 
  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2008
  •  Depreciation duration: 5 years
  • Straight-line rate used: 20%
  • Depreciation end date: 31/08/2013

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2008 – 31/12/2008

10,000.00

(1) 666.67

666.67

01/01/2009 – 31/12/2009

9,333.33

(2) 1,866.67

2,533.34

01/01/2010 – 31/12/2010

7,466.66

 1,493.33

4,026.67

01/01/2011 – 31/12/2011

5,973.33

1,194.67

5,221.34

01/01/2012 – 31/12/2012

4,778.66

955.73

6,177.07

01/01/2013 – 31/12/2013

3,822.93

 (3) 3,822.93

10,000.00

(1) 10,000.00 * 20 % * 4/12 since the asset is held for only 4 months during this 1st fiscal year.

(2) 9,333.33 * 20% = 1,866.67

(3) Charge = Net value since the depreciation end date 31/08/2013 is in the fiscal year.

6th example 
  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2009
  •  Depreciation duration: 5 years
  • Rate: 25% (maximum rate applied)
  • Depreciation end date: 31/08/2014

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2009 – 31/12/2009

10,000.00

(1) 833.33

833.33

01/01/2010 – 31/12/2010

9,166.67

(2) 2,291.67

3,125.00

01/01/2011 – 31/12/2011

6,875.00

 1,718.75

4,843.75

01/01/2012 – 31/12/2012

5,156.25

1,289.06

6,132.81

01/01/2013 – 31/12/2013

3,867.19

966.80

7,099.61

01/01/2014 – 31/12/2014

2,900.39

 (3) 2,900.39

10,000.00

(1) 10,000.00 * 25 % * 4/12 since the asset is held for only 4 months during this 1st fiscal year.

(2) 9,166.67 * 25% = 2,291.67

(3) Charge = Net value since the depreciation end date 31/08/2014 is in the fiscal year.

DX - German mixed declining

It is the declining depreciation method applied according to German rules. It is called German mixed declining in so far as the depreciation plan ends in straight-line, like the French declining method.

Depreciation origin

The origin depends on the prorata temporis:

  • If the prorata temporis is expressed in months:
    The declining depreciation origin is the 1st day of the month entered in the depreciation start date.
  • If the prorata temporis is expressed in weeks:
    The declining depreciation origin is the 1st day of the 1st week of the month entered in the depreciation start date.

..\FCT\SEEINFO If the Simplification rule (specified at Depreciation method setup) is retained, the depreciation start date will automatically be loaded with the 1st day of the acquisition quarter: the depreciation will thus be determined from this date on.

Duration

It must be entered by the user, in years and hundredths of years.

Example:  6 years 2/3 = 6.66 or 6.67.

..\FCT\SEEINFO For this depreciation method, Sage X3 will round to 2 decimals all the durations entered or imported with more than 2 decimals. Ditto for residual durations calculated in the framework of intra-group sales.

Rate

The rate that can be applied for the declining depreciation calculation cannot be determined by section associations, it is automatically determined by Sage X3 as follows:

Decrease of both values: (1 / depreciation duration * digressivity factor) and Maximum rate

The digressivity factor and depreciation rate maximum are defined as follows:

Purchase period 

Coefficient 

 Maximum rate

 Until 31/12/2000

3

30%

 01/01/2001 - 31/12/2005

2

20%

 01/01/2006 - 31/12/2007

 3

30 %

 01/01/2008 - 31/12/2008

1

 

 01/01/2009 - 31/12/2010

2.5

25 %

From 01/01/2011 onwards

1

 

Depreciation end date

It depends on the prorata temporis type.

  • If the prorata temporis is expressed in months:
    Depreciation end date = 1st day of the month of the depreciation start date + depreciation duration in months.
    This leads to a depreciation end set at the end of the month.
     
    Example 1:

    - Depreciation start date: 05/12/2005
    - Duration: 3 years
    - Depreciation end date: 11/30/2008
     
    Example 2:

    - Depreciation start date: 01/07/2005
    - Duration: 5 years
    - Depreciation end date: 30/06/2010
     
  • If the prorata temporis is expressed in weeks:
    Depreciation end date = 1st day of the 1st week of the month of the depreciation start date + depreciation duration in months.
    This leads to a depreciation end set at the end of a week.
     
    Example 3:

    - Depreciation start date: 15/09/2005 (the 1st day of the 1st week in 09/05 is 05/09/2005)
    - Duration: 5 years
    - Depreciation end date: 29/08/2010

Prorata temporis

Is active at the level of the context of depreciation.
A prorata temporis applies in the following cases:

  • During the acquisition fiscal year, if the depreciation originis not the 1st day of the fiscal year.
  • If a fiscal year has a duration different from 12 months or 52 weeks in the case of prorata temporis in weeks.
  • During the disinvestment fiscal year, the charge is calculated until the last day of the month entered in the disposal date (or until the last day of the last week of the month entered in the disposal date, if the flag Prorata temporis in weeks is active).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..

Depreciation charges

  • The depreciation charge of the 1st fiscal year is equal to:
                  Depreciable value * rate * prorata temporis

    A prorata temporis in months or in weeks is applied in the following cases:
     
    - The Depreciation start date is later than the fiscal year start date
    - The Duration of the fiscal year differs from 12 months (or 52 weeks in the case of prorata temporis in weeks)
    - The Disposal date of the asset is in the interval [Fiscal year start date – Fiscal year end date]
     
  • The depreciation charge of the next fiscal years is equal to:
     
    - either Net depreciable value at fiscal year start * rate * prorata temporis
    - or Net depreciable value at fiscal year start
       * ( number of holding months or weeks in the fiscal year
       / number of months or weeks in the period [Fiscal year start date – Depreciation end date] )
       if the result of this calculation is larger than: Net depreciable value at fiscal year start * rate * prorata temporis
     
    A prorata temporis in months or in weeks is applied in the following cases: 
     
    - The Duration of the fiscal year differs from 12 months (or 52 weeks in the case of prorata temporis in weeks)
    - The Disposal date of the asset is in the interval [Fiscal year start date – Fiscal year end date]
     
    If the depreciation end date is earlier than or equal to the fiscal year end date, the fiscal year charge is automatically loaded with the net depreciable value, so as to close the depreciation.

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

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 pc = 
( Σ p1 to pc ( (Period weight / Number of months or weeks in the period) * Number of holding months or weeks in the period )
/
Σ p1 to pc ( (Period weight / Number of months or weeks in the period) * Number of holding months or weeks 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: 15/09/2006
  •  Depreciation duration: 5 years
  • Rate: 30% (maximum rate applied since 1/5 * 3 = 60% > than the maximum rate 30%)
  • Depreciation end date: 31/08/2011

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2006 – 31/12/2006

10,000.00

(1) 1,000.00

1,000.00

01/01/2007 – 31/12/2007

9,000.00

(2) 2,700.00

3,700.00

01/01/2008 – 31/12/2008

6,300.00

1,890.00

5,590.00

01/01/2009 – 31/12/2009

4,410.00

 (3) 1,653.75

7,243.75

01/01/2010 – 31/12/2010

2,756.25

(4) 1,653.75

8,897.50

01/01/2011 – 31/12/2011

1,102.50

(5) 1,102.50

10,000.00

(1) 10,000.00 * 30% * 4/12 since the asset is held for only 4 months during this 1st fiscal year.

(2) 9,000.00 * 30% = 2,700.00

(> than 4,410.00 * 30% = 1,323.00

(4) Net value 2,756.25 * (12 months / 20 months remaining to be depreciated) = 1,653.75

(5) Charge = Net value since the depreciation end date 31/08/2011 is in the fiscal year.

Distribution of the 2006 fiscal year charge based on the period weight in months:

Period

Number of months / Weight

Number of holding months

Depreciation charge

01/01/2007 – 31/03/2007

03 / 03

03

(1) 736.36

01/04/2007 – 30/06/2007

03 / 03

03

(2) 736.37

01/07/2007 – 30/09/2007

03 / 02

03

(3) 490.91

01/10/2007 – 31/12/2007

03 / 03

03

(4) 736.36

Fiscal year 2006 total

2,700.00

(1) 2,700.00 * (03 / 03 * 03) / [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 736.36

 (2) 2,700.00 * [(03 / 03 * 03) + (03 / 03 * 03)] 

/ [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 1,472.73 – 736.36 = 736.37

(3) 2,700.00 * [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03)]

/ [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 1,963.64 – 1,472.73 = 490.91

(4) 2,700.00 * [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ]

/ [(03 / 03 * 03) + (03 / 03 * 03) + (02 / 03 * 03) + (03 / 03 * 03) ] = 2,700.00 – 1,963.64 = 736.36

2nd example 
  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2006
  •  Depreciation duration: 3.33 years
  • Rate: 30 % (maximum rate applied)
  • Depreciation end date: 31/12/2009

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2006 – 31/12/2006

10,000.00

(1) 1,000.00

1,000.00

01/01/2007 – 31/12/2007

9,000.00

(2) 3,000.00

4,000.00

01/01/2008 – 31/12/2008

6,000.00

3,000.00

7,000.00

01/01/2009 – 31/12/2009

3,000.00

 3,000.00

10,000.00

(1) 10,000.00 * 30% * 4/12 since the asset is held for only 4 months during this 1st fiscal year.

(2) 9,000.00 * (12 months / 36 months remaining to be depreciated) = 3,000.00 > than 9,000.00 * 30% = 2,700.00
 

In case of asset issue on 14/06/2008 (the depreciation is calculated until the end of month 06/2008):

Fiscal year

Net value

Fiscal year charge

Fiscal year total

01/01/2006 – 31/12/2006

10,000.00

1,000.00

1,000.00

01/01/2007 – 31/12/2007

9,000.00

3,000.00

4,000.00

01/01/2008 – 31/12/2008

6,000.00

(3) 1,500.00

5,500.00

(3) 6,000.00 * (6 months / 24 months) = 1,500.00 > than 6,000.00 * 30% * 6/12 = 900.00

3rd example 
  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2006
  •  Depreciation duration: 5 years
  • Rate: 30% (maximum rate applied)
  • Depreciation end date: 29/08/2011
  • Specificity: management of the prorata temporis in weeks
     

Fiscal year

Net value

Fiscal year charge

Fiscal year total

03/01/2006 – 01/01/2007

10,000.00

(1) 980.77

980.77

02/01/2007 – 31/12/2007

9,019.23

(2) 2,705.77

3,686.54

01/01/2008 – 30/12/2008

6,313.46

1,894.04

5,580.58

31/12/2008 – 28/12/2009

4,419.42

(3) 1,653.31

7,233.89

29/12/2009 – 27/12/2010

2,766.11

(4) 1,653.31

8,887.20

28/12/2010 – 02/01/2012

1,112.80

(5) 1,112.80

10,000.00

(1) 10,000.00 * 30% * 17/52 since the asset is held for only 17 weeks during this 1st fiscal year.

(2) 9,019.23 * 30% = 2,705.77

(3) 4,419.42 * (52 weeks / 139 weeks remaining to be depreciated) = 1,653.31 > than 4,419.42 * 30% = 1,325.83 1,325.83

(4) Net value 2,766.11 * (52 weeks / 87 weeks remaining to be depreciated) = 1,653.31

(5) Charge = Net value since the depreciation end date 29/08/2011 is in the fiscal year.
 

Distribution of the 2007 fiscal year charge based on the period weight in weeks:

Period

Number of months / Weight

Number of holding months

Depreciation charge

02/01/20067– 02/04/2007

13 / 13

13

(6) 732.81

03/04/2007 – 02/07/2007

13 / 13

13

(7) 732.82

03/07/2007 – 01/10/2007

13 / 09

13

(8) 507.33

02/10/2007 – 31/12/2007

13 / 13

13

(9) 732.81

Fiscal year 2006 total

2,705.77

(6) 2,705.77 * (13 / 13 * 13) / [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 732.81

(7) 2,705.77 * [(13 / 13 * 13) + (13 / 13 * 13)]

/ [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 1,465.63 – 732.81 = 732.82

(8) 2,705.77 * [((13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13)]

/ [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 1,972.96 – 1,465.63 = 507.33

(9) 2,705,77 * [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13)]

/ [(13 / 13 * 13) + (13 / 13 * 13) + (9 / 13 * 13) + (13 / 13 * 13) ] = 2,705.77 – 1,972.96 = 732.81

4th example 
  •  Gross value: 10,000
  • Residual value: 0
  •  Depreciation start date: 15/09/2006
  •  Depreciation duration: 3.33 years
  • Rate: 30% (maximum rate applied)
  • Depreciation end date: 28/12/2009
  • Specificity: management of the prorata temporis in weeks

Fiscal year

Net value

Fiscal year charge

Fiscal year total

03/01/2006 – 01/01/2007

10,000.00

(1) 980.77

980.77

02/01/2007 – 31/12/2007

9,019.23

(2) 3,006.41

3,987.18

01/01/2008 – 30/12/2008

6,012.82

3,006.41

6,993.59

31/12/2008 – 28/12/2009

3,006.41

 3,006.41

10,000.00

(1) 10,000.00 * 30% * 17/52 since the asset is held for only 17 weeks during this 1st fiscal year.

(2) 9,019.23 * (52 weeks / 156 weeks remaining to be depreciated) = 3,006.41 > than 9,019.23 * 30% 2,705.77

In case of asset issue on 14/07/2008 (depreciation calculated until the last day of the last week in 07/2008, that is, on 29/07/2008):

Fiscal year

Net value

Fiscal year charge

Fiscal year total

03/01/2006 – 01/01/2007

10,000.00

980.77

980.77

02/01/2007 – 31/12/2007

9,019.23

3,006.41

3,987.18

01/01/2008 – 30/12/2008

6,012.82

(3) 1,734.47

5,721.65

(3) 6,012.82 * (30 weeks / 104 weeks) = 1,734.47