Question

What functions of Excel are used for the computation of depreciation?

Answer 1

1. SLN - Straight‑line depreciation:
   • Syntax: SLN(cost, salvage, life)
   • Use: returns a constant depreciation amount per period (cost − salvage)/life.
2. DB - Declining‑balance (written‑down value) depreciation:
   • Syntax: DB(cost, salvage, life, period, [month])
   • Use: depreciation for a specific period using the fixed‑declining balance method; supports an adjustment for months in first year.
3. DDB - Double‑declining (or any accelerated) depreciation:
   • Syntax: DDB(cost, salvage, life, period, [factor])
   • Use: accelerated depreciation (default factor = 2 for double‑declining); returns depreciation for a given period.
4. SYD - Sum‑of‑years’ digits depreciation:
   • Syntax: SYD(cost, salvage, life, period)
   • Use: returns depreciation for a given period using the SYD accelerated method.
5. VDB - Variable declining balance (more flexible than DB/DDB):
   • Syntax: VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])
   • Use: computes depreciation over a range of periods; can switch to straight‑line when that becomes more advantageous.
6. AMORLINC - Linear amortisation for accounting schedules:
   • Syntax: AMORLINC(cost, date_purchased, first_period, salvage, period, rate, [basis])
   • Use: returns depreciation (amortisation) for each accounting period using a linear method commonly used in some local accounting rules.
7. AMORDEGRC - Depreciation for declining balance with depreciation coefficient (country‑specific):
   • Syntax: AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis])
   • Use: returns depreciation using the French/German style declining‑balance method with coefficients (useful for certain local accounting rules).