Double Declining Balance: Calculation of depreciation on monthly basis
The new depreciation key should be calculated as follows:
Method 1 is to be used for the first third of the assets useful life.
Method 2 is to be used AFTER the first third of the assets usefule life has elapsed, if it is greater than Method 1.
Method 1 (DDB):
Monthly depreciation = (NBV / TOTAL Useful Life in months) * 2
Method 2 (STL):
Monthly depreciation = NBV / REMAINING Useful life in months
It should do the calculation based on useful life as months not year, which means the planned depreciation will be different every month.
e.g: APC : Value = 3600
useful life = 36 moths (3 years)
1 month planned deprciation would be = 200 (DDB)
2 month planned deprciation would be = 188.79 (DDB)
3 month planned deprciation would be = 178.40 (DDB)
and so on..
Please help me out in getting the correct way to create depreciation key to meet my exact requirement.