You can select various depreciation methods and conventions. The purpose of the methods is to allocate the depreciable value of the fixed asset into accounting periods. The depreciable value of the fixed asset is the acquisition price reduced by a scrap value, if any.

The following topics provide information about depreciation methods and conventions:


Straight line service life depreciation

Reducing balance depreciation

Manual depreciation

Factor depreciation

Round-off depreciation

Consumption depreciation

Straight line life remaining depreciation

125% Reducing balance depreciation

150% Reducing balance depreciation

175% Reducing balance depreciation

200% Reducing balance depreciation

RB/SL (France) depreciation

(AUS) Low value pool depreciation

If you're using depreciation conventions and you modify the last depreciation run date for an asset, which skips some depreciations, the depreciation for the last year might be greater or less than is expected. The depreciation is adjusted by the number of depreciation periods affected by the modification of the last depreciation run date.

For example, if you are using the half year depreciation convention over three years, depreciation normally occurs over 3 1/2 years. If you change the last depreciation run date during the 3 1/2 years, the last year of depreciation moves out the number of periods affected. If you move the date by three months, the last year will have nine months worth of depreciation, when normally there would be six months worth of depreciation. You can choose from the following depreciation conventions.