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Former Member
Oct 02, 2009 at 07:58 AM

Depreciation of entire asset class


Hello experts,

I have an interesting problem regarding implementation of tax depreciation for Machinery & Equipment according to Swedish tax rules.

How do you, for an entire asset class (NOT for each individual asset), create a depreciation key that chooses straight line or declining balance, whichever is more beneficial, calculated on the values of all assets in the class?

The tax rule says you can choose between two calculation rules: 20% straight line or 30% declining balance, which ever is more beneficial. You choose which rule to use at Year End Closing, and you choose it for the entire asset class.

Once you have made your choice, you post depreciation on the entire asset class, NOT on each individual asset.

The rule has several aspects:

1. Comparison of two methods.

2. Calculation on asset class level.

3. Decision not taken until Year End Closing.

Thankful for help,