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Former Member
Nov 13, 2012 at 04:10 AM

Depreciation Issue

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Hi Experts,

It's a complicated issue about asset depreciation. I hope someone can show up and help me.

The assets use multilevel method (by period),period control is 11/11/01/01

The depreciation (acquisition value/12*rate) is correct from begining, after subsequent acquisition (happened in period 5 last year of useful life) , the depreciation((original acquisition+subsequent acquisition)/12*rate ) at period 6-8 is correct, but the yearly planned depreciation (original acquisition-accumulated previous year depreciation) turned to accumulated depreciation from period 6-10 at period 6, then depreciation from period 9-10 (last two periods in last year of useful life) suddenly turned to positive. It seems to meet the sum depreciation of period 6-10.

This issue happens to all assets occuring subsequent acquistion.

For example,

The multilevel method in year is

Period1 2%

Period2 1%

Period3 5%

Period4 2%

Period5 2%

Period6 6%

Period7 2%

Period8 4%

Period9 3%

Period10 1%

Asset Original Acquisition value is 1200

Previous year's depreciation 1172

Period1 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28

Period2 Depreciation -(1200/12*1%)=-1 Planned depreciation this year 28

Period3 Depreciation -(1200/12*5%)=-5 Planned depreciation this year 28

Period4 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28

Period5 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28 Subsequent Acquistion 300

Period6 Depreciation -((1200+300)/12*6%)=-7.5 Planned depreciation this year 20

Period7 Depreciation -((1200+300)/12*2%)=-2.5 Planned depreciation this year 20

Period8 Depreciation -((1200+300)/12*4%)=-5 Planned depreciation this year 20

Period9 Depreciation -((1200+300)/12*3%)=-3.75(Should be) System Calculated 6 Planned depreciation this year 20

Period10 Depreciation -((1200+300)/12*1%)=-1.25(Should be) System Calculated 1 Planned depreciation this year 20

Thanks