Italy Complete (Method 29)
For the example that follows, these assumptions apply:
Actual Start Date: April 15, 1997.
Modified Start Date: January 1, 1997.
Cost: 10.000.000 ITL (without tax).
Asset Life: 1 year (12 life periods).
This table shows the depreciation of an asset when using depreciation method 29:
Year |
End of Year Date |
Accumulated Depreciation |
Depreciation Expense |
Calculation |
|---|---|---|---|---|
1997 |
December 31, 1997 |
-10.000.000 |
10.000.000 |
10.000.000 |
The requirement to depreciate only assets with a cost under 1.000.000 lira can be done with data selection that is less than the amount in the Asset Account Balance File table (F1202) for Year to Date Amount (FLAPYN) or the Balance Forward (FLAPYC).
This table explains the requirements for method 29:
Requirement |
Explanation |
|---|---|
Asset life |
The demonstration data includes a version of method 29 for an asset life of 12 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 whole year. |
Conventions |
No conventions are needed. |
Life Year Rules |
Life year 1 to 1 |
Calculations |
Fully depreciate cost. Basis includes the salvage value. |
Disposals |
Method 29 has no disposal rules. |