Difference between revisions of "Documentation/How Tos/Calc: AMORLINC function"

Revision as of 04:00, 14 May 2013

AMORLINC

Returns depreciation for a period using linear depreciation (French system).

This function is only available if the Analysis AddIn is installed.

Syntax:

AMORLINC(cost; purchase_date; first_period_end; salvage; period; rate; basis)

cost: the acquisition cost.

purchase_date: the date of acquisition.

first_period_end: the end date of the first depreciation period.

salvage: the salvage value at the end of life.

period: the period for which to calculate depreciation. 0 is the initial period (from purchase_date to first_period_end).

rate: the rate of depreciation.

basis: is chosen from a list of options and indicates how the year is to be calculated. Defaults to 0 if omitted.

0 - US method (NASD), 12 months of 30 days each

1 - Exact number of days in months, exact number of days in year

2 - Exact number of days in month, year has 360 days

3 - Exact number of days in month, year has 365 days

4 - European method, 12 months of 30 days each

Calculates the amount of depreciation for a period, using a linear depreciation method as in French accounting systems.

The book life time of the asset is 1/rate, which is an initial fractional period up to the first period end, then a number of full periods, then a fractional period to the end of the asset's life.

The depreciation in the initial period 0 (the period (from purchase_date to first_period_end) is calculated proportionately and is given by:

cost*rate*YEARFRAC(purchase_date;first_period_end;basis).

The depreciation in subsequent whole periods is given by:

cost*rate.

In the final (fractional) period of the life time, the depreciation reduces the remaining book value of the asset to salvage; in other words it is:

cost - salvage - total_depreciation_charged_so_far.

AMORLINC returns 0 after this.

Example:

AMORLINC(1000; "2004-02-01"; "2004-12-31"; 10; 8; 0.1; 1)

returns 100.

Issues:

• Calc and Excel calculate differently when the date of purchase is the end of a period. Excel regards the initial period 0 as the first full period. Calc (it is believed correctly) regards the initial period 0 as of zero length, and thus correctly returns zero depreciation. Example: AMORLINC(1000;"2008-12-31";"2008-12-31";100;0;0.25;1) returns 0 in Calc and 250 in Excel. In this example the final fractional period (giving 150 depreciation) is period 3 in Excel and period 4 in Calc.