Most fixed assets are calculated with standard straight line or accelerated depreciation methods. Occasionally a custom depreciation method is required when standard formulas do not apply. These methods will multiply the asset cost by a yearly recovery percentage like those shown below:
Below you can see how the percentages are applied to an asset with a $1,000 purchase price. Over the 4 year life each annual percentage is applied until the asset is fully depreciated.
Custom depreciation is useful when the standard methods are not appropriate. We recently had a request to use this feature to account for costs associated with acquiring or renewing insurance contracts. These costs can be amortized as deferred acquisition cost (DAC). This is just one example but if you need to do a non-standard calculation then custom depreciation is a good option.
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More information about Bassets eDepreciation software can be found at Bassets.net or depre123.com. At Bassets register for our live webinar, download a free evaluation copy and get a personalized pricing estimate. At depre123 try out our Free Depreciation Calculator and check out our cloud based fixed assets application.