Documentation/Calc Functions/AMORDEGRC
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Function name:
AMORDEGRC
Category:
Financial Analysis
Summary:
Calculates the depreciation for a period using degressive depreciation, applying a depreciation factor that is dependent on the lifetime of the asset.
Syntax:
AMORDEGRC(Cost; Date Purchased; First Period; Salvage; Period; Rate[; Basis])
Returns:
Returns a non-negative real number.
Arguments:
Cost is a positive real number or a reference to the cell containing that number which is the acquisition cost.
DatePurchased is a date or a reference to a cell containing that date which is the date of acquisition.
FirstPeriod is a date or a reference to a cell containing that date which is the end date of the first depreciation period.
Salvage is a positive real number or a reference to the cell containing that number which is the salvage value of the asset at the end of the depreciable life.
Period is a non-negative integer or a reference to the cell containing that number which is the settlement period to be considered. The value of 0 represents the period from the purchase date to the end of the first period. A value of 1 is the next year, and so on.
Rate is a positive real number (expressed as a percentage or a fraction) or a reference to the cell containing that number which is the rate of depreciation.
Basis is a positive integer from 0 to 4 or a reference to a cell containing that integer which is chosen from a list of options and indicates how the year is to be calculated. For more information, visit Wikipedia's Day count convention page.
Basis | Calculation |
---|---|
0 or missing | 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. |
- If either of DatePurchased or FirstPeriod are not valid dates then the function returns a value (#VALUE!) error. For more details about dates visit help.
- If either Rate or Cost is less than or equal to 0 then the function will return an error value.
- If either Salvage or Period is less than 0 then the function will return an error value.
- If Period is a non-integer non-negative real value, then it is truncated to an integer.
- If the DatePurchased date is after the FirstPeriod date then the function returns an error value.
- If Basis is a non-integer value, then the function uses its floor value, i.e. it is truncated to an integer value.
- After truncation if Basis is any number except 0,1,2,3,4 or missing,then the function will return an error value.
Additional details:
- The coefficients for depreciation for AMORDEGRC are:
Life time of an asset t = 1/Rate | Coefficient |
---|---|
0 <= t < 3 | 1 |
3 <= t < 5 | 1.5 |
5 <= t <=6 | 2 |
6 < t | 2.5 |
Here for the Life of assets is (1/Rate).
- If the asset was purchased in the middle of the period, the depreciation is factored accordingly. Hence for period 0, the deprecation is equivalent to ROUND(Depreciation Factor * Cost * Rate * YEARFRAC (DatePurchased; FirstPeriod; Basis)). And for period 1 the depreciation is equivalent to ROUND(Depreciation Factor * Rate * (Cost – Depreciation from Previous Period)). And so on…
- The function will not depreciate beyond the point at which the total depreciation is greater than Cost – Salvage.
- For more details on amortization, visit Wikipedia.
Examples:
Formula | Description | Returns |
---|---|---|
=AMORDEGRC(1500;"2001-04-01";"2001-06-15";454;2;0.19;2) | The function calculates the amount of depreciation for a period as degressive amortization for the given value of arguments. | 325 |
=AMORDEGRC(1500;"2001-04-01";"2001-06-15";454;2;19%;) | The function calculates the amount of depreciation for a period as degressive amortization for the given value of arguments. Here the basis is the US method (0) whenever either empty or no argument is passed. | 326 |
=AMORDEGRC(1500;"2001-04-01";"2001-06-15";454;2;0.9;0) | The value of 0 is returned because the asset depreciates so rapidly relative to its Salvage value because of the high Rate. | 0 |
=AMORDEGRC(1500,DATE(1,4,1),DATE(1,6,15),454,2,0.19,2) | The function calculates the amount of depreciation for a period as degressive amortization for the given value of arguments. DATE function can also be used for passing dates. | 325 |
=AMORDEGRC(1500,36982 ,37057 ,454,2,0.19,2) | The function calculates the amount of depreciation for a period as degressive amortization for the given value of arguments. Numbers can also be used for passing dates. | 325 |
Related LibreOffice functions:
ODF standard:
None
Equivalent Excel functions:
AMORDEGRC