Talk:Documentation/Calc Functions/AMORDEGRC

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SF Comments

(1) General. Would it be worth adding a link to Wikipedia’s Amortization page?
(2) Summary. Suggest the following replacement – “Calculates the depreciation for a period using degressive depreciation, applying a depreciation factor that is dependent on the lifetime of the asset”.
(3) Arguments, Cost. Change “costs” to “cost”.
(4) Arguments, FirstPeriod. Change “settlement” to “depreciation”.
(5) Arguments, Salvage. Delete “capital”.
(6) Arguments, Period. Change to reflect that this should be a non-negative integer. 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. Probably need to add a comment that real values are truncated.
(7) Arguments, Rate. Mention that it can be specified as a percentage.
(8) Arguments, Basis. I would include a link to Wikipedia’s “Day count convention” page.
(9) Arguments, 1st bullet. Suggest the following re-word for better grammar – “If either of DatePurchased or FirstPeriod are not valid dates then the function returns a value (#VALUE!) error.”. However, may be worth mentioning that dates are essentially just numbers (search for "date and time functions" in the Help).
(10) Arguments, 2nd bullet. Suggest the following re-word for better grammar – “If either Rate or Cost is less than or equal to 0 then the function will return an error value”.
(11) Arguments, 3rd bullet. Suggest the following re-word for better grammar – “If either Salvage or Period is less than 0 then the function will return an error value.”.
(12) Arguments, 4th bullet. Insert “the” before “DatePurchased”.
(13) Arguments, 6th bullet. Change “ny” to “any”. I would remove the text in brackets as it does not really add anything.
(14) Additional details. The information here is incorrect and should be replaced. I have checked the code and the depreciation coefficients used are based on the Life (i.e. 1/Rate) as follows. If 0 < Life < 3 then the coefficient 1 is used. If 3 <= Life < 5 then the coefficient 1.5 is used. If 5 <= Life <= 6 then the coefficient 2 is used. If Life > 6 then the coefficient 2.5 is used. (This almost matches the information on but, as previously stated, my information is based on the code and should be assumed correct).
(15) Additional details. Please explain that 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 (Date Purchased; First Period; Basis)). And for period 1 the depreciation is equivalent to ROUND(Depreciation Factor * Rate * (Cost – Depreciation from Previous Period)). And so on…
(16) Additional details. Also note that the function will not depreciate beyond the point at which the total depreciation is greater than Cost – Salvage.
(17) Examples, all examples. Delete “settlement”.
(18) Examples, 3rd example. This example is incorrect. The value of 0 is returned because the asset depreciates so rapidly relative to its Salvage value because of the high Rate. Try a lower Salvage value (e.g. 50) and you will get a non-zero return.
(19) Examples, general. Maybe include some examples which use the DATE function, enter dates as numbers and use the % format for the Rate argument.

--Stevefanning (talk) 2020-11-12T14:17:51 (UTC)