8 Defining Depreciation Methods for Korea

To define the depreciation methods for Korea, this chapter contains these topics:

Section 8.1, "Frequently Used Depreciation Formulas,"
Section 8.2, "Normal (Declining Balance),"
Section 8.3, "Normal (Straight Line),"
Section 8.4, "Prior to 95 (Declining Balance),"
Section 8.5, "Prior to 95 (Straight Line),"
Section 8.6, "Revaluation (Declining Balance),"
Section 8.7, "Revaluation (Straight Line),"
Section 8.8, "Capital Expenditure (Declining Balance),"
Section 8.9, "Capital Expenditure (Straight Line),"
Section 8.10, "Special Rate (Declining Balance),"
Section 8.11, "Special Rate (Straight Line),"
Section 8.12, "Mid-Year (Declining Balance),"
Section 8.13, "Mid-Year (Straight Line)."

8.1 Frequently Used Depreciation Formulas

On Depreciation Formula Revision, define the following formulas for use with most depreciation methods:

Normal Depreciation
Basis Declining Balance
Latter Half Year Depreciation
Last Year Depreciation to Salvage

8.1.1 Normal Depreciation

Figure 8-1 Depreciation Formula Revision screen (Normal)

Description of "Figure 8-1 Depreciation Formula Revision screen (Normal)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K11
Description	Normal Depreciation
Formula	10*11

8.1.2 Basis Declining Balance

Figure 8-2 Depreciation Formula Revision screen (Basis Declining Balance)

Description of "Figure 8-2 Depreciation Formula Revision screen (Basis Declining Balance)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	KBD
Description	Basis Declining Bal
Formula	01+02

8.1.3 Latter Half Year Depreciation

Figure 8-3 Depreciation Formula Revision screen (Latter Half Year)

Description of "Figure 8-3 Depreciation Formula Revision screen (Latter Half Year)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K12
Description	Latter Half Yr Depr
Formula	(1011)50

8.1.4 Last Year Depreciation to Salvage

Figure 8-4 Depreciation Formula Revision screen (Last Year to Salvage)

Description of "Figure 8-4 Depreciation Formula Revision screen (Last Year to Salvage)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K22
Description	Lst Yr Dpr to Slv
Formula	01+02-46

8.2 Normal (Declining Balance)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up the depreciation method

8.2.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code KN for Korean Declining Balance Normal.

Figure 8-5 General User Defined Codes screen (KN)

Description of "Figure 8-5 General User Defined Codes screen (KN)"

Complete the following fields with the values indicated below:

Field	Value
Code	KN
Description	Korean DB Normal
Special Handling Code	1
Hard Coded	N

8.2.2 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method KN

8.2.2.1 Setting Up Reference Information and Conventions

Figure 8-6 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-6 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	KN
Rule Description	Korean DB Normal
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	2

8.2.2.2 Attaching the Formulas to Depreciation Method KN

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 3
Second Record: Life Years 4 through 999

First Record: Life Years 1 through 3

Figure 8-7 Depreciation Rule Revisions screen (Life Years 1 through 3)

Description of "Figure 8-7 Depreciation Rule Revisions screen (Life Years 1 through 3)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	3
Annual Multiplier	.52800000
Depreciation	K11
Basis	KBD
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 4 through 999

Figure 8-8 Depreciation Rule Revisions screen (Life Years 4 through 999)

Description of "Figure 8-8 Depreciation Rule Revisions screen (Life Years 4 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	4
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.3 Normal (Straight Line)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up the depreciation method

8.3.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code K1 for Korean Straight Line Normal.

Figure 8-9 General User Defined Codes screen (K1)

Description of "Figure 8-9 General User Defined Codes screen (K1)"

Complete the following fields with the values indicated below:

Field	Value
Code	K1
Description	Korean S/L Normal
Special Handling Code	1
Hard Coded	N

8.3.2 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method K1

8.3.2.1 Setting Up Reference Information and Conventions

Figure 8-10 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-10 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	K1
Rule Description	Korean S/L Normal
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Secondary Acct/%	2

8.3.2.2 Attaching the Formulas to Depreciation Method K1

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 3
Second Record: Life Years 4 through 999

First Record: Life Years 1 through 3

Figure 8-11 Depreciation Rule Revisions screen (Life Years 1 through 3)

Description of "Figure 8-11 Depreciation Rule Revisions screen (Life Years 1 through 3)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	3
Annual Multiplier	.25000000
Depreciation	K11
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 4 through 999

Figure 8-12 Depreciation Rule Revisions screen (Life Years 4 through 999)

Description of "Figure 8-12 Depreciation Rule Revisions screen (Life Years 4 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	4
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.4 Prior to 95 (Declining Balance)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up depreciation formulas
Setting up the depreciation method

8.4.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code KP for Korean Declining Balance Prior to 95.

Figure 8-13 General User Defined Codes screen (KP)

Description of "Figure 8-13 General User Defined Codes screen (KP)"

Complete the following fields with the values indicated below:

Field	Value
Code	KP
Description	Korean DB Pre95
Special Handling Code	1
Hard Coded	N

8.4.2 Setting Up Depreciation Formulas

On Depreciation Formula Revision, define the following formula:

Figure 8-14 Depreciation Formula Revision screen (Formula KBS)

Description of "Figure 8-14 Depreciation Formula Revision screen (Formula KBS)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	KBS
Description	Basis Pre 95
Formula	10*12
Multiplier/Constant	.099757

8.4.3 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method KP

8.4.3.1 Setting Up Reference Information and Conventions

Figure 8-15 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-15 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	KP
Rule Description	Korean DB Pre95
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	2

8.4.3.2 Attaching the Formulas to Depreciation Method KP

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 4
Second Record: Life Years 5 through 8
Third Record: Life Years 9 through 999

First Record: Life Years 1 through 4

Figure 8-16 Depreciation Rule Revisions screen (Life Years 1 through 4)

Description of "Figure 8-16 Depreciation Rule Revisions screen (Life Years 1 through 4)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	4
Annual Multiplier	.43800000
Depreciation	K11
Basis	KBD
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 5 through 8

Figure 8-17 Depreciation Rule Revisions screen (Life Years 5 through 8)

Description of "Figure 8-17 Depreciation Rule Revisions screen (Life Years 5 through 8)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	5
Life Yr Thr	8
Annual Multiplier	.25000000
Depreciation	K11
Basis	KBS
SC (Secondary Percentage Continuation)	1

Third Record: Life Years 9 through 999

Figure 8-18 Depreciation Rule Revisions screen (Life Years 9 through 999)

Description of "Figure 8-18 Depreciation Rule Revisions screen (Life Years 9 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	9
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.5 Prior to 95 (Straight Line)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up depreciation formulas
Setting up the depreciation method

8.5.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code K2 for Korean Straight Line Prior to 95.

Figure 8-19 General User Defined Codes screen (K2)

Description of "Figure 8-19 General User Defined Codes screen (K2)"

Complete the following fields with the values indicated below:

Field	Value
Code	K2
Description	Korean S/L Pre95
Special Handling Code	1
Hard Coded	N

8.5.2 Setting Up Depreciation Formulas

On Depreciation Formula Revision, define the following formulas:

Basis Pre 95
Pre 95 Depreciation After Life
Pre 95 Straight Line Depreciation
Pre 95 Depreciation to Salvage Straight Line

Basis Pre 95

Figure 8-20 Depreciation Formula Revision screen (Basis Pre 95)

Description of "Figure 8-20 Depreciation Formula Revision screen (Basis Pre 95)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	KBP
Description	Basis Pre 95
Formula	01*12
Multiplier/Constant	.100000

Pre 95 Depreciation After Life

Figure 8-21 Depreciation Formula Revision screen (Pre 95 Depreciation After Life)

Description of "Figure 8-21 Depreciation Formula Revision screen (Pre 95 Depreciation After Life)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K13
Description	Pre95 Depr Aftr Life
Formula	10/12*49
Multiplier/Constant	60.000000

Pre 95 Straight Line Depreciation

Figure 8-22 Depreciation Formula Revision screen (Pre 95 Straight Line)

Description of "Figure 8-22 Depreciation Formula Revision screen (Pre 95 Straight Line)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K14
Description	Pre95 S/L Depr
Formula	(01-(0112))11
Multiplier/Constant	.100000

Pre 95 Depreciation to Salvage Straight Line

Figure 8-23 Depreciation Formula Revision screen (Pre 95 to Salvage Straight Line)

Description of "Figure 8-23 Depreciation Formula Revision screen (Pre 95 to Salvage Straight Line)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K23
Description	Pre95 Dpr to Slv S/L
Formula	(10/12*49)-46
Multiplier/Constant	60.000000

8.5.3 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method K2

8.5.3.1 Setting Up Reference Information and Conventions

Figure 8-24 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-24 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	K2
Rule Description	Korean S/L Pre 95
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	2

8.5.3.2 Attaching the Formulas to Depreciation Method K2

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 4
Second Record: Life Years 5 through 8
Third Record: Life Years 9 through 999

First Record: Life Years 1 through 4

Figure 8-25 Depreciation Rule Revisions screen (Life Years 1 through 4)

Description of "Figure 8-25 Depreciation Rule Revisions screen (Life Years 1 through 4)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	4
Annual Multiplier	.25000000
Depreciation	K14
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 5 through 8

Figure 8-26 Depreciation Rule Revisions screen (Life Years 5 through 8)

Description of "Figure 8-26 Depreciation Rule Revisions screen (Life Years 5 through 8)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	5
Life Yr Thr	8
Depreciation	K13
Basis	KBP
SC (Secondary Percentage Continuation)	1

Third Record: Life Years 9 through 999

Figure 8-27 Depreciation Rule Revisions screen (Life Years 9 through 999)

Description of "Figure 8-27 Depreciation Rule Revisions screen (Life Years 9 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	9
Life Yr Thr	999
Depreciation	K23
Basis	KBP
SC (Secondary Percentage Continuation)	1

8.6 Revaluation (Declining Balance)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up the depreciation method

8.6.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code KR for Korean Declining Balance Revaluation.

Figure 8-28 General User Defined Codes screen (KR)

Description of "Figure 8-28 General User Defined Codes screen (KR)"

Complete the following fields with the values indicated below:

Field	Value
Code	KR
Description	Korean DB Revaluation
Special Handling Code	1
Hard Coded	N

8.6.2 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method KR

8.6.2.1 Setting Up Reference Information and Conventions

Figure 8-29 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-29 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	KR
Rule Description	Korean DB Revaluation
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	3

8.6.2.2 Attaching the Formulas to Depreciation Method KR

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 3
Second Record: Life Year 4
Third Record: Life Years 5 through 999

First Record: Life Years 1 through 3

Figure 8-30 Depreciation Rule Revisions screen (Life Years 1 through 3)

Description of "Figure 8-30 Depreciation Rule Revisions screen (Life Years 1 through 3)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	3
Annual Multiplier	.52800000
Depreciation	K11
Basis	KBD
SC (Secondary Percentage Continuation)	1

Second Record: Life Year 4

Figure 8-31 Depreciation Rule Revisions screen (Life Year 4)

Description of "Figure 8-31 Depreciation Rule Revisions screen (Life Year 4)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	4
Life Yr Thr	4
Annual Multiplier	.90000000
Depreciation	K11
Basis	KBD
SC (Secondary Percentage Continuation)	1

Third Record: Life Years 5 through 999

Figure 8-32 Depreciation Rule Revisions screen (Life Years 5 through 999)

Description of "Figure 8-32 Depreciation Rule Revisions screen (Life Years 5 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	5
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.7 Revaluation (Straight Line)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up depreciation formulas
Setting up the depreciation method

8.7.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code K3 for Korean Straight Line Revaluation.

Figure 8-33 General User Defined Codes screen (K3)

Description of "Figure 8-33 General User Defined Codes screen (K3)"

Complete the following fields with the values indicated below:

Field	Value
Code	K3
Description	Korean S/L Revaluation
Special Handling Code	1
Hard Coded	N

8.7.2 Setting Up Depreciation Formulas

On Depreciation Formula Revision, define the following formula:

Figure 8-34 Depreciation Formula Revision screen (Method K3)

Description of "Figure 8-34 Depreciation Formula Revision screen (Method K3)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K21
Description	Lst Yr Dpr to Slv SL
Formula	(10*11)-46

8.7.3 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method K3

8.7.3.1 Setting Up Reference Information and Conventions

Figure 8-35 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-35 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	K3
Rule Description	Korean S/L Revaluation
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	3

8.7.3.2 Attaching the Formulas to Depreciation Method K3

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 3
Second Record: Life Year 4
Third Record: Life Years 5 through 999

First Record: Life Years 1 through 3

Figure 8-36 Depreciation Rule Revisions screen (Life Years 1 through 3)

Description of "Figure 8-36 Depreciation Rule Revisions screen (Life Years 1 through 3)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	3
Annual Multiplier	.25000000
Depreciation	K11
SC (Secondary Percentage Continuation)	1

Second Record: Life Year 4

Figure 8-37 Depreciation Rule Revisions screen (Life Year 4)

Description of "Figure 8-37 Depreciation Rule Revisions screen (Life Year 4)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	4
Life Yr Thr	4
Annual Multiplier	.50000000
Depreciation	K11
SC (Secondary Percentage Continuation)	1

Third Record: Life Years 5 through 999

Figure 8-38 Depreciation Rule Revisions screen (Life Years 5 through 999)

Description of "Figure 8-38 Depreciation Rule Revisions screen (Life Years 5 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	5
Life Yr Thr	999
Annual Multiplier	.50000000
Depreciation	K21
SC (Secondary Percentage Continuation)	1

8.8 Capital Expenditure (Declining Balance)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up the depreciation method

8.8.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code KE for Korean Declining Balance Capital Expenditure.

Figure 8-39 General User Defined Codes screen (KE)

Description of "Figure 8-39 General User Defined Codes screen (KE)"

Complete the following fields with the values indicated below:

Field	Value
Code	KE
Description	Korean DB Capital Expenditure
Special Handling Code	1
Hard Coded	N

8.8.2 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method KE

8.8.2.1 Setting Up Reference Information and Conventions

Figure 8-40 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-40 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	KE
Rule Description	Korean DB Capital Expenditure
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	2

8.8.2.2 Attaching the Formulas to Depreciation Method KE

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 5
Second Record: Life Years 6 through 999

First Record: Life Years 1 through 5

Figure 8-41 Depreciation Rule Revisions screen (Life Years 1 through 5)

Description of "Figure 8-41 Depreciation Rule Revisions screen (Life Years 1 through 5)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	5
Annual Multiplier	.52800000
Depreciation	K11
Basis	KBD
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 6 through 999

Figure 8-42 Depreciation Rule Revisions screen (Life Years 6 through 999)

Description of "Figure 8-42 Depreciation Rule Revisions screen (Life Years 6 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	6
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.9 Capital Expenditure (Straight Line)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up the depreciation method

8.9.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code K4 for Korean Straight Line Capital Expenditure.

Figure 8-43 General User Defined Codes screen (K4)

Description of "Figure 8-43 General User Defined Codes screen (K4)"

Complete the following fields with the values indicated below:

Field	Value
Code	K4
Description	Korean S/L Capital Expenditure
Special Handling Code	1
Hard Coded	N

8.9.2 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method K4

8.9.2.1 Setting Up Reference Information and Conventions

Figure 8-44 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-44 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	K4
Rule Description	Korean S/L Capital Expenditure
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	2

8.9.2.2 Attaching the Formulas to Depreciation Method K4

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 5
Second Record: Life Years 6 through 999

First Record: Life Years 1 through 5

Figure 8-45 Depreciation Rule Revisions screen (Life Years 1 through 5)

Description of "Figure 8-45 Depreciation Rule Revisions screen (Life Years 1 through 5)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	5
Annual Multiplier	.25000000
Depreciation	K11
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 6 through 999

Figure 8-46 Depreciation Rule Revisions screen (Life Years 6 through 999)

Description of "Figure 8-46 Depreciation Rule Revisions screen (Life Years 6 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	6
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.10 Special Rate (Declining Balance)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up depreciation formulas
Setting up the depreciation method

8.10.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code KS for Korean Declining Balance Special Rate.

Figure 8-47 General User Defined Codes screen (KS)

Description of "Figure 8-47 General User Defined Codes screen (KS)"

Complete the following fields with the values indicated below:

Field	Value
Code	KS
Description	Korean DB Special Rate
Special Handling Code	1
Hard Coded	N

8.10.2 Setting Up Depreciation Formulas

On Depreciation Formula Revision, define the following formula:

Figure 8-48 Depreciation Formula Revision screen (Method KS)

Description of "Figure 8-48 Depreciation Formula Revision screen (Method KS)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K16
Description	D/B Special Rate Dep
Formula	11(1012)
Multiplier/Constant	.528000

8.10.3 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method KS

8.10.3.1 Setting Up Reference Information and Conventions

Figure 8-49 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-49 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	KS
Rule Description	Korean DB Special Rate
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Secondary Acct/%	6
Allow Over Depreciation	2

8.10.3.2 Attaching the Formulas to Depreciation Method KS

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 3
Second Record: Life Years 1 through 3
Third Record: Life Years 4 through 999

First Record: Life Years 1 through 3

Figure 8-50 Depreciation Rule Revisions screen (Life Years 1 through 3)

Description of "Figure 8-50 Depreciation Rule Revisions screen (Life Years 1 through 3)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	3
Annual Multiplier	.52800000
Depreciation	K11
Basis	KBD
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 1 through 3

Figure 8-51 Depreciation Rule Revisions screen (Second Record, Life Years 1 - 3)

Description of "Figure 8-51 Depreciation Rule Revisions screen (Second Record, Life Years 1 - 3)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	3
Annual Multiplier	.50000000
Depreciation	K16
Basis	KBD
SC (Secondary Percentage Continuation)	2

Third Record: Life Years 4 through 999

Figure 8-52 Depreciation Rule Revisions screen (Life Years 4 through 999)

Description of "Figure 8-52 Depreciation Rule Revisions screen (Life Years 4 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	4
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.11 Special Rate (Straight Line)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up depreciation formulas
Setting up the depreciation method

8.11.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code K5 for Korean Straight Line Special Rate.

Figure 8-53 General User Defined Codes screen (K5)

Description of "Figure 8-53 General User Defined Codes screen (K5)"

Complete the following fields with the values indicated below:

Field	Value
Code	K5
Description	Korean S/L Special Rate
Special Handling Code	1
Hard Coded	N

8.11.2 Setting Up Depreciation Formulas

On Depreciation Formula Revision, define the following formula:

Figure 8-54 Depreciation Formula Revision screen (Method K5)

Description of "Figure 8-54 Depreciation Formula Revision screen (Method K5)"

Complete the following fields with the values indicated below:

Field	Value
Formula ID	K15
Description	S/L Special Rate Dep
Formula	11(1012)
Multiplier/Constant	.250000

8.11.3 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method K5

8.11.3.1 Setting Up Reference Information and Conventions

Figure 8-55 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-55 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	K5
Rule Description	Korean S/L Special Rate
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Secondary Acct/%	6
Allow Over Depreciation	2

8.11.3.2 Attaching the Formulas to Depreciation Method K5

Attach the following formulas to the depreciation method:

First Record: Life Years 1 through 2
Second Record: Life Years 1 through 2
Third Record: Life Years 3 through 999

First Record: Life Years 1 through 2

Figure 8-56 Depreciation Rule Revisions screen (Life Years 1 through 2)

Description of "Figure 8-56 Depreciation Rule Revisions screen (Life Years 1 through 2)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	2
Annual Multiplier	.25000000
Depreciation	K11
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 1 through 2

Figure 8-57 Depreciation Rule Revisions screen (Life Years 1 through 2)

Description of "Figure 8-57 Depreciation Rule Revisions screen (Life Years 1 through 2)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	2
Annual Multiplier	.50000000
Depreciation	K15
SC (Secondary Percentage Continuation)	2

Third Record: Life Years 3 through 999

Figure 8-58 Depreciation Rule Revisions screen (Life Years 3 through 999)

Description of "Figure 8-58 Depreciation Rule Revisions screen (Life Years 3 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	3
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.12 Mid-Year (Declining Balance)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up the depreciation method

8.12.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code KY for Korean Declining Balance Mid-Year.

Figure 8-59 General User Defined Codes screen (KY)

Description of "Figure 8-59 General User Defined Codes screen (KY)"

Complete the following fields with the values indicated below:

Field	Value
Code	KY
Description	Korean DB Mid-Year
Special Handling Code	1
Hard Coded	N

8.12.2 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method KY

8.12.2.1 Setting Up Reference Information and Conventions

Figure 8-60 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-60 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	KY
Rule Description	Korean DB Mid-Year
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	2

8.12.2.2 Attaching the Formulas to Depreciation Method KY

Attach the following formulas to the depreciation method:

First Record: Life Year 1
Second Record: Life Years 2 through 4
Third Record: Life Years 5 through 999

First Record: Life Year 1

Figure 8-61 Depreciation Rule Revisions screen (Life Year 1)

Description of "Figure 8-61 Depreciation Rule Revisions screen (Life Year 1)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	1
Life Yr Thr	1
Annual Multiplier	.52800000
Depreciation	K12
Basis	KBD
SC (Secondary Percentage Continuation)	1

Second Record: Life Years 2 through 4

Figure 8-62 Depreciation Rule Revisions screen (Life Years 2 through 4)

Description of "Figure 8-62 Depreciation Rule Revisions screen (Life Years 2 through 4)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	2
Life Yr Thr	4
Annual Multiplier	.52800000
Depreciation	K11
Basis	KBD
SC (Secondary Percentage Continuation)	1

Third Record: Life Years 5 through 999

Figure 8-63 Depreciation Rule Revisions screen (Life Years 5 through 999)

Description of "Figure 8-63 Depreciation Rule Revisions screen (Life Years 5 through 999)"

Complete the following fields with the values indicated below:

Field	Value
Life Yr Frm	5
Life Yr Thr	999
Depreciation	K22
SC (Secondary Percentage Continuation)	1

8.13 Mid-Year (Straight Line)

Defining this depreciation method includes the following tasks:

Adding a user defined code
Setting up the depreciation method

8.13.1 Adding a User Defined Code

On General User Defined Codes for Depreciation Method (12/DM), create code K6 for Korean Straight Line Mid-Year.

Figure 8-64 General User Defined Codes screen (K6)

Description of "Figure 8-64 General User Defined Codes screen (K6)"

Complete the following fields with the values indicated below:

Field	Value
Code	K6
Description	Korean S/L Mid-Year
Special Handling Code	1
Hard Coded	N

8.13.2 Setting Up the Depreciation Method

On Depreciation Rule Revisions, set up the depreciation method.

Setting up the depreciation method includes the following tasks:

Setting up reference information and conventions
Attaching the formulas to depreciation method K6

8.13.2.1 Setting Up Reference Information and Conventions

Figure 8-65 Depreciation Rule Revisions screen (Reference)

Description of "Figure 8-65 Depreciation Rule Revisions screen (Reference)"

Complete the following fields with the values indicated below:

Field	Value
Depreciation Method	K6
Rule Description	Korean S/L Mid-Year
Life (Periods)	48
Initial Term Apport	W
Compute Direction	C
1st Year Spread	1
Allow Over Depreciation	2