The following metods are available for you to depreciate your assets with:
- Straight line : If you set the depreciation method to be Straight line, an equal amount will be depreciated at each depreciation.
Depreciable value = (Cost – Salvage value) / Useful life
- Irregular: When the irregular method is chosen, you can make manual changes to a plan calculated by the straight line method. Choose this plan if different amounts are to be written off each month / year.
- Degressive = When degressive is chosen as a method, the plan records larger depreciation expenses during the early years of an asset’s useful life and smaller depreciation expenses during the asset's later years.
Periodic Depreciation Expense = Beginning book value x Rate of depreciation in %
In the last year of the asset’s useful life we enter the remaining value of the asset to be depreciated in total - this amount can be more or less than the stated % to be depreciated.
You can edit the amount column in the plan if adjustments need to be made. You can also switch to straight line or irregular depreciation methods to continue depreciating your asset if necessary.