Chart of Depreciation 
Chart of Depreciation
Definition
An area showing the valuation of a fixed asset for a particular purpose (for example, for individual financial statements, balance sheets for tax purposes, or management accounting values). For more information, refer to
Chart of Depreciation.
Use
When you create a company code using the template for South Korea, the system assigns it chart of depreciation 1KR, which follows South Korean accounting requirements.
Structure
The chart of depreciation consists of the following depreciation areas:
|
Depreciation area |
Use |
Currency |
|
01 |
Book depreciation |
Local |
|
02 |
Tax limit as per Corporate Tax Law |
Local |
|
03 |
Tax as per Tax Reduction Control Law |
Local |
|
20 |
Cost Accounting |
Local |
|
30 |
Consolidation |
Local |
|
31 |
Consolidation |
Group |
In the book depreciation area, the ordinary depreciation plus the additional special depreciation is calculated and posted to G/L accounts.
The tax limit area is used to calculate the tax limit allowed by the Corporate Tax Law and compared to the operational depreciation calculated in area 01. The depreciation calculated in the tax limit area is not posted to the G/L accounts but can be used for reporting.
The tax area is used to calculate the lump sum depreciation. This lump sum depreciation is not posted to the G/L accounts but is only used for reporting.
If you want to prepare depreciation statements, you must also create a sibuin depreciation area.