AMORDEGRC function

Returns the depreciation for each accounting period. This function is provided for the French accounting system. If an asset is purchased in the middle of the accounting period, the prorated depreciation is taken into account. The function is similar to AMORLINC, except that a depreciation coefficient is applied in the calculation depending on the life of the assets.

Syntax

AMORDEGRC(cost,date_purchased,first_period,salvage,period,rate,basis)

 Important   Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2008,5,23) for the 23rd day of May, 2008. Problems can occur if dates are entered as text.

Cost     is the cost of the asset.

Date_purchased     is the date of the purchase of the asset.

First_period     is the date of the end of the first period.

Salvage     is the salvage value at the end of the life of the asset.

Period     is the period.

Rate     is the rate of depreciation.

Basis     is the year basis to be used.

Basis Date system
0 or omitted 360 days (NASD method)
1 Actual
3 365 days in a year
4 360 days in a year (European method)


Remarks

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900. Microsoft Excel for the Macintosh uses a different date system as its default.
  • This function will return the depreciation until the last period of the life of the assets or until the cumulated value of depreciation is greater than the cost of the assets minus the salvage value.
  • The depreciation coefficients are:
Life of assets (1/rate) Depreciation coefficient
Between 3 and 4 years 1.5
Between 5 and 6 years 2
More than 6 years 2.5
  • The depreciation rate will grow to 50 percent for the period preceding the last period and will grow to 100 percent for the last period.
  • If the life of assets is between 0 (zero) and 1, 1 and 2, 2 and 3, or 4 and 5, the #NUM! error value is returned.

Example

The example may be easier to understand if you copy it to a blank worksheet.

ShowHow to copy an example

  • Create a blank workbook or worksheet.
  • Select the example in the Help topic.

 Note   Do not select the row or column headers.

Selecting an example from Help

Selecting an example from Help
  • Press CTRL+C.
  • In the worksheet, select cell A1, and press CTRL+V.
  • To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.
 
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A B
Data Description
2400 Cost
8/19/2008 Date purchased
12/31/2008 End of the first period
300 Salvage value
1 Period
15% Depreciation rate
1 Actual basis (see above)
Formula Description (Result)
=AMORDEGRC(A2,A3,A4,A5,A6,A7,A8) First period depreciation (776)
 
 
Applies to:
Excel 2007