Depreciation that lands where the policy says ASSETS
A policy says reduce to a thousand over five years. Somebody picks 25% because it sounds right. Five years later the books say 2,373, and nobody can see why.
The years
The convention decides which year takes the charge for an asset bought in October. It is a real choice with a real effect on this year’s profit, so the schedule changes under you when you switch it.
The assets
Leave the reducing balance rate blank and it is solved from the cost, the residual and the life, which is the only way the last year lands on the residual.
The register
Year by year, asset by asset
How it works
ASSETS keeps a fixed asset register and works out depreciation that ends where your policy says it should. Give it the cost, the residual value and the life, and it solves the reducing-balance rate that actually lands on that residual, instead of a round percentage that drifts. It handles the choice of method, the first-year convention and disposals, and shows the schedule year by year. Your register stays in this browser.
Doing this often? OBSCURA Books keeps the books a register belongs to: journals, the balance sheet and the year end. On its own, US$4 a month; with everything else, US$9 a month or US$79 a year. 7 days free.