DB (cost;residual_value;life;period;month) function
Returns the depreciation of an asset for a specified
period, using the fixed salary declining balance method.
Cost = is the initial
value of the asset.
Salvage
= is the final value after the depreciation of the asset.
Life = is the number
of periods during which the depreciation of the asset takes place (also
known as usefull life)
Period
= is the period over which you want the depreciation to be be
calculated.
Month = is the number
of months in the first year, if these are not specified, they are assumed
to be 12.
example:
We have bought a car for 20.000€, and we will
suppose that in 5 years time the value of the car will be 9.000€.
We want to know what the depreciation will be 6 months after buying it.
If we introduce the data DB(20000;9000;5;1;6)
it should give us the result 1.480€, that is, 6 months after buying
it, the car will be worth 18.520€..
DDB
(cost;salvage;life;period;factor) Function
Returns the depreciation of an asset over a specific
period, by way of the depreciation method for double balance reduction
or another specified method.
The double reduction depreciation method calculates
the depreciation at a accelerated value. The depreciation is higher during
the first period, and reduces over succesive periods.
Cost = is the inicial asset
value
Salvage = is the value
at the end of the depreciation (sometimes called the salvage value of
the asset)
Life = is the number of
periods over which the asset is being depreciated (sometimes called the
useful life of the asset).
Period = is the period
over which the depreciation is calculated.
Factor = is the value at
which the balance diminishes. If factor is omitted, it is assumed to be
2 (the method of depreciation by double balance reduction.
Example:
We will continue with the example of the car.
Therefore if we introduce the data
DDB(20000;9000;5;1) it should give us the result of 8.000€,
in the first year of the cars sale it will be worth 12.000€
VBD (cost;salvage;life;start_period;end_period;factor;no_switch)
function
Returns the depreciation of an asset for any period
you specify, including partial periods, using the doubledeclining balance
method or some other method you specify.
VDB stands for variable declining balance.
Cost
= is the inicial asset value
Salvage = is the final
value of the asset after depreciation.
Life =
is the number of periods over which the asset is depreciated (sometimes
called the useful life of the asset).
Initial_period = is the
starting period for which you want to calculate the depreciation
Final_period = is the ending
period for which you want to calculate the depreciation.
Factor = If factor is omitted,
it is assumed to be 2 (the doubledeclining balance method). Change factor
if you do not want to use the doubledeclining balance method. For a description
of the doubledeclining balance method, see DDB.
No_Switch = is a logical
value specifying whether to switch to straightline depreciation when
depreciation is greater than the declining balance calculation.
If no_switch is TRUE, Microsoft Excel does not switch
to straightline depreciation even when the depreciation is greater than
the declining balance calculation.
If no_switch is FALSE or omitted, Excel switches to
straightline depreciation when depreciation is greater than the declining
balance calculation.
Example:
If we introduce the data VBD(5000;500;5*12;0;1)
it should give us a result of 166.67€, that is, in the first month
of the assets sale it is worth 4833.33€(166,67€ less than when
it was bought).
