Italy Straight Line (Method 27)
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: 5 years (60 life periods).
This table shows the depreciation of an asset when using depreciation method 27:
Year |
End of Year Date |
Accumulated Depreciation |
Depreciation Expense |
Calculation |
|---|---|---|---|---|
1997 |
December 31, 1997 |
N/A |
2.000.000 |
10.000.000 / 60 / 12 |
1998 |
December 31, 1998 |
-2.000.000 |
2.000.000 |
10.000.000 / 60 / 12 |
1999 |
December 31, 1999 |
-2.000.000 |
2.000.000 |
10.000.000 / 60 / 12 |
2000 |
December 31, 2000 |
-2.000.000 |
2.000.000 |
10.000.000 / 60 / 12 |
2001 |
December 31, 2001 |
-2.000.000 |
2.000.000 |
10.000.000 / 60 / 12 |
This table explains the requirements for method 27:
Requirement |
Explanation |
|---|---|
Asset life |
The demonstration data includes a version of method 27 for an asset life of 36, 60, and 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 whole year. |
Conventions |
No conventions are needed. |
Life year rules |
Life year 1 to the year-end of the asset |
Calculations |
Formulas calculate a year of straight line depreciation for the whole year. Basis includes the salvage value. |
Disposals |
Method 27 has no disposal rules. |