German Replacement Cost (Method 26)
For the example that follows, these assumptions apply:
Actual Start Date: June 15, 1997.
Modified Start Date: June 1, 1997.
Cost: 100.000,00 DEM (without tax).
Asset Life: 5 years (60 life periods).
This table shows the depreciation of an asset when using depreciation method 26:
Year |
End of Year Date |
GL Statistic |
Accumulated Depreciation |
Depreciation Expense |
Rule 1 Calculation |
|---|---|---|---|---|---|
1997 |
December 31, 1997 |
95.000 |
-10.000 |
10.000 |
100.00 / 95.000 * 95.000 |
1998 |
December 31, 1998 |
90.000 |
-9.473,68 |
9.473,68 |
100.00 / 95.000 * 90.000 |
1999 |
December 31, 1999 |
85.000 |
-8.947,37 |
8.947,37 |
100.00 / 95.000 * 85.000 |
2000 |
December 31, 2000 |
80.000 |
-8.421,05 |
8.421,05 |
100.00 / 95.000 * 80.000 |
2001 |
December 31, 2001 |
75.000 |
-7.894,74 |
7.894,74 |
100.00 / 95.000 * 75.000 |
2002 |
December 31, 2002 |
70.000 |
-7.368,42 |
7.368,42 |
100.00 / 95.000 * 70.000 |
The AAI (DS4) must be set up for the GL Statistic. The GL Statistic must come from the AU ledger type. Other ledger types can be retrieved with elements from both Asset Account Balances File table (F1202) and the Account Balances table (F0902) balances. The calculation can continue beyond the asset's life.
This table explains the requirements for method 26:
Requirement |
Explanation |
|---|---|
Asset life |
The demonstration data includes a version of method 26 for an asset life of 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 start of the period. |
Conventions |
Allow Over Depreciation is set to not exceed adjusted basis and continue beyond the asset's life. |
Life year rules |
Life years 1 to 998 use the formula calculation. |
Calculations |
Use the cost divided by the insurance value and multiplied by the GL Actual Unit Statistic. |
Disposals |
Method 26 has no disposal rules. |