Factors multi use more years of practice in their lives, have a depreciation is technical, then due to wear and tear, both economically due to overcoming innovative market.
It's necessary to amortize the cost of the multi-year factor year to year. Depreciation it's usually divided in 5 years regarding the factors deferred furniture: computer, producing machine, office furniture, and so go on; while, for the multi-year real estate amortization factors will be divided in 10 years, but if you took out a loan for the purchase of the property that exceeds 10 years, the amortization should be calculated for the actual years of the mortgage contract, if the mortgage will be for less than ten years, the amortization will have as lasting 10 years in operation.
So every year end will be calculated based on the purchase value of the depreciation factor of several years. Each year, the percentage will be the same:
Vf / 5 = Share of Amortization at year-end
Ve /10 = Share of Amortization at year-end
If factors have a multi-year depreciation technological share amortization will be calculated in the same way and the bill will be the same, but there will be more an additional calculation that is the multi-year depreciation factors.
Even in this case are divided into mobile factors and estates.
Mobile factors depreciate to 20% of their purchase value per year, those properties of 10%. Technological factors are extremely important especially for company working in the IT industry.
The multi-technological factors have a very fast decay, but despite this, their value will be zero only when the workpiece will not be sold or will no longer be updated regarding the software. For immobile factors such as physical networks DSL or fiber optic will be depreciated at a slower rate because the properties of this ITPO not changed every five years as mobile ones.
The calculations of the multi-year technological factors are slightly different from the previous ones.
Vft / 5 = Share of Amortization Technological Furniture at year-end
Vft * 20% = Quote Depreciation factors Furniture Technology
SATF – QDFT = Share real amortization
Vet /10 = Share of Amortization Technological Estate at year-end
Vet * 10% = Quote Depreciation factors Estate Technology
SATE – QDET = Share real Amortization
It's necessary that the depreciation rate is divided by the depreciation for correct accounting so that the company knows exactly what the real value of their equipment and know exactly when you need to invest to innovate and be competitive on the market.
Rashna