Figure: Catch-Up/Smoothing Method

 

The following graphic shows the depreciation posted for an acquisition made during the fiscal year, depending on which posting procedure is used. The depreciation posted using the two methods is compared to depreciation for an acquisition at the start of the fiscal year.

The depreciation data are as follows:

  • Depreciation posting cycle: Monthly

  • Period control: Half-year convention

  • Acquisition on 5/1/06 (asset value date): 12.000,-

  • Depreciation start date: 1.1.2006

  • Planned useful life: 10 years