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

Revision as of 17:47, 1 September 2008

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 depreciation for the (possibly partial) first period is calculated proportionately.

The life time t of the asset is 1/rate.

The depreciation in the initial period 0 (the period (from purchase_date to first_period_end) 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.

See also:

AMORDEGRC

DB, DDB, SLN, SYD, VDB

Financial date systems

Financial functions