If there is an amount not depreciated when you takeover your old asset, or when the net book value of the asset is more than 10% of the acquisition value, then a uniform depreciation amount of residual value is recorded over 3, 4 or 5 years starting from the year with the "gap-years" after the completion of depreciation (when the net book value hits the residual value of 10% of the acquisition costs).

In this example, six options exist for the calculation of depreciation:

(In the assets ended ordinary depreciation on December 31 in 1994, the option 1,4 or 6 of the following options started from 1995 is admitted according to the Korean GAAP.)

Additional depreciation amount allowed by the revised CTL and GAAP:

If the takeover of the old assets occurs before January 1, 1999, one of the following depreciation keys should be assigned to the asset:

These depreciation keys calculate the annual depreciation amount on basis of a 10% residual value. The system changes the calculation of the depreciation when the 10% residual value is reached. After the residual value is reached, the residual value is depreciated according to the selected option.

Enter 1990 as ordinary depreciation start date and the original useful life of 9 years. The system automatically changes over to the depreciation of the residual value after the residual value percentage rate of 10% is hit.