German Declining Balance (Method 23)

For the example that follows, these assumptions apply:

This table shows the depreciation of an asset when using depreciation method 23:

Year	End of Year Date	Accumulated Depreciation	Depreciation Expense	Calculation
1997	December 31, 1997	-25.000	25.000	100.00030 percent (10/12) periods
1998	December 31, 1998	-22.500	22.500	(100.000-25.000) * 30 percent * (12/12) periods
1999	December 31, 1999	-15.750	15.750	(100.000-47.500) * 30 percent * (12/12) periods
2000	December 31, 2000	-11.025	11.025	(100.000-63.250) * 30 percent * (12/12) periods
2001	December 31, 2001	-7.717,5	7.717,5	(100.000-74.275) * 30 percent * (12/12) periods
2002	December 31, 2002	-5.402,25	5.402,25	(100.000-89.992,5) * 30 percent * (12/12) periods
2003	December 31, 2003	-3.781,58	3.781,58	(100.000-87.394,75) * 30 percent * (12/12) periods
2004	December 31, 2004	-2.786,42	2.786,42	(100.000-91.176,33) / (38*12) periods
2005	December 31, 2005	-2.786,42	2.786,42	(100.000-93.962,75) / (26*12) periods
2006	December 31, 2006	-2.786,43	2.786,43	(100.000-96.749,17) / (14*12) periods
2007	December 31, 2007	-464,40	464,40	100.000-99.353,60 for last 2 periods

Note: The straight line lower limit replaces the declining balance calculation in the eighth year of the asset's life.

This table explains the requirements for method 23:

Requirement	Explanation
Asset life	The demonstration data includes versions of method 23 for an asset life of 120 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 start of the period.
Conventions	No conventions are needed.
Life year rules	Life year 1 to 10 takes 30 percent declining balance.
Calculations	Use 30 percent as a multiplier for the declining balance. The upper limit is three times straight line. The lower limit is straight line.
Disposals	Method 23 has no disposal rules.