on 11-24-2009 7:46 AM
Hello All,
The accelerated amortization method is a two-step process combining both
the 200% DDB method and the STL method. All Non-Powertrain Special
Tooling projects shall begin amortization using DDB as detailed in Step
1 below. The conversion to STL shall occur in the same month when STL
becomes greater (Step 2). The conversion to STL is permitted only once,
when STL amortization becomes greater than the DDB amortization.
here DDB : Double decline balance method
STL : stright line depreciation
In this case it has a Freeze Period
(period equal to the first 1/3 of the Special Tooling's useful life) in
which amortization must be calculated using the DDB method. Upon
exiting the Freeze Period, the amortization method shall change to STL
when STL monthly amortization becomes greater than the DDB monthly
amortization (Step 2).
for this how can we calicultae DDB method and STL method values ?
Could you please provide solution for this .
Thanks and Regards
NTR
YES
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