Japan Declining Balance (Method 33)

For the example that follows, these assumptions apply:

• Actual Start Date: May 15, 1997.

• Modified Start Date: July 2, 1997.

• Cost: 10.000 JPY (without tax).

• Salvage: 10 percent of cost.

• Asset Life: 5 years (60 life periods).

This table shows the depreciation of an asset when using depreciation method 33:

Year	End of Year Date	Accumulated Depreciation	Depreciation Expense	Calculation
1997	December 31, 1997	-1.845	1.845	10.000 * 36.9 percent * (6 / 12) Periods in Year
1998	December 31, 1998	-3.009	3.009	(10.000 - 1.845) * 36.9 percent * (12 / 12) Periods in Year
1999	December 31, 1999	-1.899	1.899	(10.000 - 4.854) * 36.9 percent * (12 / 12) Periods in Year
2000	December 31, 2000	-1.198	1.198	(10.000 - 6.753 * 36.9 percent * (12 / 12) Periods in Year
2001	December 31, 2001	-756	756	(10.000 - 7.951 * 36.9 percent * (12 / 12) Periods in Year
2002	December 31, 2002	-293	293	10.000 - 8.707 + 1.000

Note: The years for a five-year asset overlap into a sixth fiscal year due to the initial term of apportionment.

This table explains the requirements for method 33:

Requirement	Explanation
Asset life	The demonstration data includes versions of method 33 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 midyear, start of period, or half-year.
Conventions	Disposal conventions are set for modified start dates of midyear and half year.
Life year rules	Life year 1 to 5 at a fixed rate percent. Life year 6 is remaining basis, including salvage.
Calculations	Basis times the percent rate of 36.9 percent, including accumulated depreciation. Basis includes the salvage value.
Disposals	Method 33 has no disposal rules.