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 |
|
Partial retirement |
Doesn't depreciate the asset in the year of retirement |
|
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:
|