Management Depreciation - Units Produced

This depreciation method results on an expense based on asset expected production.

It is compulsory filling out the field Product Period (N3_PRODMES) and Product Expected (N3_PRODANO), that establishes unit produced per month and unit produced in the period respectively.

 

Calculation features:

Rate is variable and established due to produced units in the period.

 

Formulas to establish the rate:

Depreciation rate = Number of produced units in the period / Numbers of units expected to be produced during asset useful life.

 

Formula to establish depreciation value:

Depreciation = Asset Original Updated Value * Depreciation rate

Where:

Asset original value: asset acquisition value is considered as original value, depending on value updated, presenting extensions and revaluations incurred since acquisition.

 

Calculation examples: Units produced

Asset Value                        30,000.00

Useful life (years)                5.00

Expected production        5,000.00

 

Year

Units Produced

Rate

Calculation Basis

Depreciation

Accumulated Depreciation

1

1000.00

20%

  30,000.00

  6,000.00

    6,000.00

2

1500.00

30%

  30,000.00

  9,000.00

  15,000.00

3

750.00

15%

  30,000.00

  4,500.00

  19,500.00

4

750.00

15%

  30,000.00

  4,500.00

  24,000.00

5

1000.00

20%

  30,000.00

  6,000.00

  30,000.00