5 Defining Depreciation Methods for Spain
To define the depreciation method for Spain, this chapter contains the topic:
5.1 Declining Balance
Defining this depreciation method includes the following tasks:
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Adding a user defined code
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Setting up depreciation formulas
-
Setting up the depreciation method
5.1.1 Adding a User Defined Code
On General User Defined Codes for Depreciation Method (12/DM), create code PS for Declining Balance depreciation.
Figure 5-1 General User Defined Codes screen (PS)
Description of "Figure 5-1 General User Defined Codes screen (PS)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Code | PS |
| Description | Declining Balance - Spain |
| Special Handling Code | 1 |
| Hard Coded | N |
5.1.2 Setting Up Depreciation Formulas
On Depreciation Formula Revision, define the following formulas:
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First and subsequent years depreciation
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Last year
First and Subsequent Years Depreciation
Figure 5-2 Depreciation Formula Revisions screen (First and Subsequent Years)
Description of "Figure 5-2 Depreciation Formula Revisions screen (First and Subsequent Years)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Formula ID | D07 |
| Description | % Declining Balance |
| Formula | ((10/11)/49)*06 |
Figure 5-3 Depreciation Formula Revision screen (Last Year)
Description of "Figure 5-3 Depreciation Formula Revision screen (Last Year)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Formula ID | D21 |
| Description | Last Year |
| Formula | 10 |
5.1.3 Setting Up the Depreciation Method
On Depreciation Rule Revisions, set up the depreciation method.
Setting up the depreciation method includes the following tasks:
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Setting up reference information and conventions
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Attaching the formulas to depreciation method PS
5.1.3.1 Setting Up Reference Information and Conventions
Figure 5-4 Depreciation Rule Revisions screen (Reference)
Description of "Figure 5-4 Depreciation Rule Revisions screen (Reference)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Depreciation Method | PS |
| Rule Description | Declining Balance - Spain |
| Life (Periods) | 84 |
| Initial Term Apport | N |
| Compute Direction | R |
| In Service From/Thru | 01.01.2005 |
| Effective From/Thru | 01.01.2005 |
5.1.3.2 Attaching the Formulas to Depreciation Method PS
Attach the following formulas to the depreciation method:
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First Record: Life Years 1 through 6
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Second Record: Life Year 7
First Record: Life Years 1 through 6
Figure 5-5 Depreciation Rule Revisions screen (Life Years 1 through 6)
Description of "Figure 5-5 Depreciation Rule Revisions screen (Life Years 1 through 6)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Life Yr Frm | 1 |
| Life Yr Thr | 6 |
| Annual Multiplier | 0.30000000 |
| Depreciation | D07 |
| Basis | 504 |
| SC (Secondary Percentage Continuation) | 1 |
Figure 5-6 Depreciation Rule Revisions screen (Life Year 7)
Description of "Figure 5-6 Depreciation Rule Revisions screen (Life Year 7)"
Complete the following fields with the values indicated below:
| Field | Value |
|---|---|
| Life Yr Frm | 7 |
| Life Yr Thr | 7 |
| Depreciation | D21 |
| Basis | 504 |
| SC (Secondary Percentage Continuation) | 1 |