Difference between revisions of "Manuals/calci/VDB"
Jump to navigation
Jump to search
| Line 5: | Line 5: | ||
*'L' is the number of periods over which the asset is depreciated | *'L' is the number of periods over which the asset is depreciated | ||
*'SP' , 'EP' are the starting and ending periods to calculate the depreciation | *'SP' , 'EP' are the starting and ending periods to calculate the depreciation | ||
| − | *' | + | *'Factor' is the rate at which the balance declines |
*'NSwitch' is a logical value specifying whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation. | *'NSwitch' is a logical value specifying whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation. | ||
| Line 26: | Line 26: | ||
|- | |- | ||
! 2 | ! 2 | ||
| − | | Salvage | + | | Salvage |
| 350 | | 350 | ||
|- | |- | ||
! 3 | ! 3 | ||
| − | | | + | | Number of Periods |
| 12 | | 12 | ||
|- | |- | ||
! 4 | ! 4 | ||
| − | | | + | | Starting Period(SP) |
| 0 | | 0 | ||
|- | |- | ||
! 5 | ! 5 | ||
| − | | | + | | Ending Period(EP) |
| 1 | | 1 | ||
|} | |} | ||
Revision as of 05:40, 27 February 2014
VDB(C, Salvage, L, SP, EP, Factor, NSwitch)
- Where 'C' is the initial cost of the asset
- 'Salvage' is the value at the end of the depreciation
- 'L' is the number of periods over which the asset is depreciated
- 'SP' , 'EP' are the starting and ending periods to calculate the depreciation
- 'Factor' is the rate at which the balance declines
- 'NSwitch' is a logical value specifying whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation.
Description
- This function computes the depreciation of an asset for any period you specify, using the double-declining balance method.
- To calculate depreciation, VDB uses a fixed rate.
- When factor = 2 this is the double-declining-balance method (because it is double the straight-line rate that would depreciate the asset to zero).
- The rate is given by:
Example
| A | B | |
|---|---|---|
| 1 | Initial Cost(C) | 3500 |
| 2 | Salvage | 350 |
| 3 | Number of Periods | 12 |
| 4 | Starting Period(SP) | 0 |
| 5 | Ending Period(EP) | 1 |