French Straight Line (Method 19)
For the example that follows, these assumptions apply:
Actual Start Date: June 15, 1997.
Modified Start Date: June 15, 1997.
Cost: 100.000 FRF (without tax).
Asset Life: 5 years (60 life periods).
This table shows the depreciation of an asset when using depreciation method 19:
Year |
End of Year Date |
Accumulated Depreciation |
Depreciation Expense |
Calculation |
---|---|---|---|---|
1997 |
December 31, 1997 |
-10904.11 |
10904.11 |
100.000 / 60*12 * 199 / 365 |
1998 |
December 31, 1998 |
-20000.00 |
2000.00 |
100.000 / 60 * 12 |
1999 |
December 31, 1999 |
-20000.00 |
2000.00 |
100.000 / 60 * 12 |
2000 |
December 31, 2000 |
-20000.00 |
2000.00 |
100.000 / 60 * 12 |
2001 |
December 31, 2001 |
-20000.00 |
2000.00 |
100.000 / 60 * 12 |
2002 |
December 31, 2002 |
-9095.89 |
9095.89 |
100.000 / 60 * 12 * 166 / 365 |
This table explains the requirements for method 19:
Requirement |
Explanation |
---|---|
Asset life |
The demonstration data includes versions of method 19 for an asset life of 48 life periods and 60 life periods. |
Balance adjustments |
Year-end with annual depreciation Apportioned by period in the year, based on percent |
Modified start date |
The modified start date is the actual start date. This method calculates the initial year percent by the number of days in the first year. Note: Typically, the number of days in a year includes the start day and end day. However, the French straight-line method uses one fewer day. The French requirement is calculated by subtracting one day from the current number of days in the year. |
Conventions |
The disposal year is the actual disposal date. |
Life year rules |
Life year 1 to 1 contains the formula that calculates the initial year apportionment. Life years 2 to 4 contain the standard, straight line formula for an annual amount. |
Calculations |
Formulas calculate a year of straight-line depreciation. The basis includes salvage value. |
Disposals |
Method 19 has no disposal rules. |