AMORDEGRC
An asset's depreciation for a period by the French declining method, with a coefficient by its life.
Group: Financial. Compatible with DAX.
Syntax
AMORDEGRC ( <cost>, <date_purchased>, <first_period>, <salvage>, <period>, <rate> [, <basis>] )| Parameter | Type | Description |
|---|---|---|
cost | Number | What the asset cost. |
date_purchased | Date | The day the asset was bought. |
first_period | Date | The day the first period ends, usually the end of that financial year. |
salvage | Number | What it is worth at the end of its life. |
period | Number | The period asked about: 0 is the first, part-year one, then 1, 2 and on. |
rate | Number | The yearly depreciation rate; 1 divided by it is the asset's life in years. |
basis | Whole number optional | How the first, part-year period is counted: US 30/360 (0, when left out), actual/actual (1), actual/365 (3) or European 30/360 (4). |
Returns
Number. The depreciation for the period, rounded to a whole number.
Remarks
- France's declining method: the rate is raised by a factor that depends on the life (1 / rate): 1.5 for a life up to 4 years, 2 up to 6 years, 2.5 beyond. Each period takes that raised rate of the value still left.
- Period 0 is prorated by the part of the year from the purchase to the end of the first period.
- Near the end of the life the remaining value is written off in two halves, and after it the result is 0.
- A life of 2 years or less (a rate of 0.5 or more) is an error, as are a negative cost or salvage, a rate of 0 or less, and a purchase after the end of the first period.
- Use
AMORLINCfor the straight-line version of the same scheme.
Examples
A brewing kettle written off over five years
It cost 10,000 on 15 March and the year ends 31 December; at 20 % a year the life is 5 years, so the rate is doubled to 40 %. The first period holds 291 of the year's 366 days.
EVALUATE
ADDCOLUMNS (
SELECTCOLUMNS ( GENERATESERIES ( 0, 6 ), "Period", [Value] ),
"Depreciation", AMORDEGRC ( 10000, DATE ( 2024, 3, 15 ), DATE ( 2024, 12, 31 ), 500, [Period], 0.2, 1 )
)
ORDER BY [Period]| Period | Depreciation |
|---|---|
| 0 | 3180 |
| 1 | 2728 |
| 2 | 1637 |
| 3 | 1228 |
| 4 | 1228 |
| 5 | 0 |
| 6 | 0 |