The AMORDEGRC function calculates the prorated linear depreciation of an asset for a specified accounting period. This function is provided for users of the French accounting system.
AMORDEGRC function is similar to AMORLINC, except that a depreciation coefficient is applied in the calculation depending on the life of the assets.
The AMORDEGRC function is an inbuilt function in Excel. It falls under the category of Financial Functions.
As a worksheet function, you can enter the AMORDEGRC function as part of a formula in a cell of a worksheet.
Thus, you can use AMORDEGRC to calculate depreciation for each accounting period.
AMORDEGRC is provided for the French accounting system but general depreciation can also be derived by any accounting system by changing the basis.
According to the accounting rule, an asset is that is purchased in the middle of the accounting period, the prorated depreciation will be taken into account.
Syntax for AMORDEGRC Function
=AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis])
Cost: The cost of the asset.
Date_purchased: The date of the purchase of the asset.
First_period: The date of the end of the first period.
Salvage: The salvage value at the end of the life of the asset. The salvage value after the asset has been fully depreciated.
Period: The period in which to calculate the linear depreciation.
Rate: The rate of depreciation.
Basis: It is the type of year basis to use when calculating the depreciation. This argument is optional. If this parameter is omitted, it assumes that the basis is set to 0. It can be any of the following values:
0 or omitted = 360 days (NASD method)
1 = Actual
3 = 365 days in a year
4 = 360 days in a year (European method)
We have created the infographics for the AMORLINC Function. With the help of these infographics, you can easily learn step by step process for using this excel functions.
Furthermore, Excel consists of many inbuilt functions which are helpful in the analytical and statistical study of number.
Simply follow the instructions in the infographics below:
Errors in AMORDEGRC Function
#NUM! error occurs when:
1. The date_purchased is > first_period.
2. The supplied salvage value is > cost.
3. Invalid numbers are supplied for the salvage, period, rate or [basis] arguments.
#VALUE! error occurs when:
1. The supplied date_purchased or first_period arguments are not valid Excel dates.
2. Any of the supplied arguments are non-numeric.
This function is applicable in Excel 2007 and above.
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