E-70
u
Fixed Percentage Method
Fixed percentage method can be used to calculate
depreciation for a given period, or to calculate the
depreciation rate.
FP
j
: depreciation charge for the
j
th year
RDV
j
: remaining depreciable value at the end of
j
th
year
I
%
: depreciation ratio
u
Sum-of-the-Year’s Digits Method
The sum-of-the-year’s-digits method calculates deprecia-
tion for a given period.
SYD
j
: depreciation charge for the
j
th year
RDV
j
: remaining depreciable value at the end of
j
th
year
100
I%
FP
j
= (
RDV
j
–1
+ FV
)
×
100
YR
1
I%
FP
1
=
PV
×
12
×
FP
n
+1
=
RDV
n
(
YR
1
G
12)
RDV
1
=
PV
–
FV
–
FP
1
RDV
j
=
RDV
j
–1
–
FP
j
RDV
n
+1
= 0 (
YR
1
G
12)
12
YR
1
n'
=
n
–
n
(
n
+
1)
Z
=
2
2
(
Intg
(
n'
) +1) (
Intg
(
n'
)+2
×
Frac
(
n'
))
SYD
1
=
YR
1
12
n
Z
×
(
PV
–
FV
)
n'
–
j+
2
Z'
)(
PV
–
FV
–
SYD
1
)
(
j
G
1)
SYD
j
= (
RDV
1
=
PV
–
FV
–
SYD
1
RDV
j
=
RDV
j
–1
–
SYD
j
n'
–
(
n
+
1)
+
2
Z'
)(
PV
–
FV
–
SYD
1
)
×
(
YR
1
G
12)
12–
YR
1
12
SYD
n
+1
= (
Z'
=