Declining balance is a form of accelerated depreciation that depreciates more aggressively than the straight-line method (where the same charge is applied in each period of equal length). This method is appropriate when an asset has greater functionality in the early years of use and becomes obsolete quickly. This method ensures that more depreciation is accounted for in the early years, since a constant rate is applied to the remaining undepreciated balance. Fixed assets, such as computer equipment, are a good example, since they are typically used only for a couple of years and then replaced.
The DB The function uses the following syntax to operate:
DB (cost, Salvage, life, period, [month])
The DB The function has the following arguments:
- cost: this is necessary and represents the initial cost of the asset
- to save: this is also necessary. This is the value at the end of the depreciation (sometimes called the asset's salvage value)
- life: This is required. This is the number of periods over which the asset is depreciated (sometimes called the asset's useful life)
- period: otra variable requerida. This is the period for which you want to calculate depreciation. The period debe usar las mismas unidades que life
- my: este argumento es opcional y representa el número de meses del primer año. Si se omite el mes, is assumed to be 12 (el número de meses en un año).
It should be noted at the same time that:
- el método de saldo decreciente fijo calcula la depreciación a un valor fijo (In other words tasa constante. DB utiliza las siguientes fórmulas para calcular la depreciación de un período:
-
(cost – Total depreciation from previous periods) * rate
- where:
-
tasa = 1 – ((salvage / cost) ^ (1 / life))
- redondeado a tres lugares decimales
- La depreciación del primer y último período es un caso especial. Para el primer período, DB utiliza esta fórmula:
-
cost * rate * my / 12
- Para el último período, DB utiliza esta fórmula:
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((cost – Total depreciation from previous periods) * rate * (12 – months)) / 12
Dados los problemas de redondeo y el método de prorrateo, debe tenerse en cuenta que la depreciación a menudo no será igual al monto que se depreciará al final de su vida útil. (see example below). En el modelado financiero, es factible que deba calcular la depreciación a partir de los primeros principios.
Please, see my example below:
