Czech Republic Percentage Rate (Method 31)

For the example that follows, these assumptions apply:

Actual Start Date: May 15, 1997.
Modified Start Date: January 1, 1997.
Cost: 90.000 CSK (without tax).
Asset Life: 4 years (48 life periods).

This table shows the depreciation of an asset when using depreciation method 31:

Year	End of Year Date	Accumulated Depreciation	Depreciation Expense	Calculation
1997	December 31, 1997	-12.780	12.780	90.000 * 14.2 percent * (12 / 12) Periods in Year
1998	December 31, 1998	-25.740	25.740	90.000 * 28.6 percent * (12 / 12) Periods in Year
1999	December 31, 1999	-25.740	25.740	90.000 * 28.6 percent * (12 / 12) Periods in Year
2000	December 31, 2000	-25.740	25.740	90.000 * 28.6 percent * (12 / 12) Periods in Year
2001	December 31, 2001	N/A	N/A	90.000 - 90.000

Note: The compute direction by period uses the life year reference to calculate the percent rate based on the asset's life and not a fiscal year. The compute direction for current year calculates the percent rate based on a fiscal year and apportions the first year differently, depending on the start date of the asset. The five-year methods apply a different percent rate in later years.

This table explains the requirements for method 31:

Requirement	Explanation
Asset life	The demonstration data includes a version of method 31 for an asset life of 48 and 60 life periods.
Balance adjustments	Year-end with annual depreciation Apportioned by period in the year, based on percent Period with life year reference
Modified start date	The modified start date is the whole year, midyear, or start of period.
Conventions	No conventions are needed for current year compute direction. Disposal convention is set for the midyear modified start date. Life year reference is needed for compute direction by period.
Life year rules	Life year 1 to 1, including initial year apportionment. Life year 2 to 4 percent rate. Life year 5 is remaining basis.
Calculations	Basis times the percent rate of 14.2 for the 1st year and 28.6 for every year thereafter. Basis includes the salvage value.
Disposals	Method 31 has no disposal rules.