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

Note: 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.