DB function
From Apache OpenOffice Wiki
< Documentation | How Tos
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.
Depreciation
Payment Streams, Annuities, Loans
Securities
Coupons
Miscellaneous
< {{#switch:Previous Page | Previous Section = Previous Section | Next Section = Next Section | Previous Page = Previous Page | Next Page = Next Page | }} | {{#switch:Next Page | Previous Section = Previous Section | Next Section = Next Section | Previous Page = Previous Page | Next Page = Next Page | }} > |
DB
Returns the depreciation of an asset for a given year using the fixed rate declining-balance method.
Syntax:
DB(originalcost; salvagevalue; lifetime; year; months1styear)
- originalcost: the initial cost of the asset.
- salvagevalue: is the value at the end of the depreciation (sometimes called the salvage value of the asset).
- lifetime: the number of years over which the asset is being depreciated.
- year: the year number for which the depreciation is calculated.
- months1styear: the number of months in the first year (defaults to 12 if omitted).
- To calculate depreciation, DB uses a fixed rate throughout the asset’s life, given by
- rate = 1 - (salvagevalue/originalcost)(1/lifetime)
- rounded to 3 decimal places.
- The depreciation in any year is given by
- value_at_start_of_year * rate
- where value_at_start_of_year = originalcost - depreciation_so_far.
- If months1styear is less than 12 the depreciation rate used for the first and last years is
- rate * number_of_months_in_year / 12.
Example:
DB(10000; 1000; 5; 1)
- returns approximately 3690 in currency units, which is the depreciation in the first year for an asset which cost 10000 and is written down to 1000 over 5 years.
Issues:
- This method underestimates total depreciation slightly if months1styear is given and not 12.
{{#switch:EN
| RU = Смотрите также:
| UA = Дивіться також:
| EN = See Also
| PT = Ver também
| #default = See Also
}}