How Depreciation for Retirements Is Calculated

Oracle Assets calculates depreciation for a current period retirement and automatically backs out any excess depreciation resulting from any prior period retirement.

Settings That Affect Depreciation for Retirements

Assets uses the retirement convention and depreciation method to determine how much depreciation to take in the year retired based on the retirement date.

How Depreciation for Retirements Is Calculated

The following table describes the different calculation scenarios:

Retirement Type	Depreciation Method	Resulting Calculation
Full retirement	Doesn't depreciate the asset in the year of retirement	Reverses the appropriate fraction of the year-to-date depreciation. Computes the gain or loss using the resulting net book value.
Partial retirement	Doesn't depreciate the asset in the year of retirement	Reverses the appropriate fraction of the year-to-date depreciation. Computes the gain or loss using the appropriate fraction of the resulting net book value.
Partial retirement	Flat-rate	Depreciates the asset cost remaining after a partial retirement.
Partial retirement	Diminishing value	Depreciates the remaining fraction of the asset's net book value as of the beginning of the fiscal year.
Both	Depreciates the asset in the year of retirement	Assets uses the retirement convention to determine one of the following: The asset is eligible for additional depreciation in that year. Some of that year's depreciation must be reversed.