Skip to Content
0
Former Member
Nov 24, 2009 at 07:46 AM

How can we caliculate the double depresiation and stright deprecian method

33 Views

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