Different countries have different methods of calculating depreciation. Excel includes the AMORDEGRC function for use with French accounting rules, which lets you assign a depreciation coefficient based on the economic life of the asset. If you operate under the French system, you’ll probably find the AMORDEGRC function to be useful.
- [Voiceover] If you do any business in France,…then you might have cause to create worksheets…that implement French accounting rules…when you're calculating depreciation.…In this movie, I will show you…how to calculate depreciation for a specific period.…And again, this is using French accounting rules.…My sample file is depreciation coefficient 0206,…and you can find it in the Chapter Two folder…of the exercise files collection.…In this case, I have all the information…that I need for the formula:…the cost, the date the item was purchased,…the end of the first accounting period,…salvage value, which is the amount that the item…can be sold for when it's reached the end…of its useful life.…
The period, which is what I want…to calculate depreciation for,…in this case it would be year one.…Next is the rate, and the rate is a coefficient…that is defined under French accounting rules…and your accountant will need to tell you what to use.…And finally there is basis, which is the calendar…that you want to use for your calculation.…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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