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

Note:

Although the asset life is five years, the asset takes six fiscal years to depreciate. The first and last years are split, depending on the actual start date. The number of days in the first year is 200 because it includes the start and end dates. The French straight line method requires 199 days, so one day is subtracted in the formula to calculate the correct apportionment percent for the first year. By default, the last year takes the remaining basis and includes salvage value.

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.