About depreciation methods—Fixed Assets Management
A depreciation method is the calculation for how an asset's depreciation expense is computed into periods over its useful life. Choose from a range of depreciation methods and conventions to meet your needs.
Depreciation methods
Fixed Assets Management supports the following methods:
Select a method to learn more about it and view example depreciation schedules.
Conventions
The convention determines how depreciation is calculated in the first and last periods of an asset's life. The conventions are defined as follows:
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Full month: Assets start to depreciate on the first day of the month that they are placed in service, regardless of the exact in-service date. This does not affect assets that are under the Daily depreciation method, which start to depreciate on the exact in-service date.
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Half year: Assets depreciate for half a period in the first year they are placed in service, regardless of the exact in-service date. The remaining depreciation is applied in an extra period at the end of the asset's life.
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Full year: Assets start to depreciate on the first day of the year that they are placed in service, regardless of the exact in-service date.
The Fixed Assets Management application supports the following conventions for each depreciation method:
| Depreciation method | Full month convention | Half year convention | Full year convention |
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| Straight line (SL) |
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| Daily (DR) |
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| 150% declining balance (150DB) |
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| 200% declining balance (200DB) |
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| Custom declining balance with true-up (CDBT) |
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| Custom declining balance without true-up (CDB) |
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