Financial - AMORDEGRC Function

Description

The AMORDEGRC function returns the depreciation for each accounting period. This function is provided for the French accounting system. If an asset is purchased in the middle of the accounting period, the prorated depreciation is taken into account.

The function is similar to AMORLINC, except that a depreciation coefficient is applied in the calculation depending on the life of the assets.

Syntax

AMORDEGRC (cost, date_purchased, first_period, salvage, period, rate, [basis])

Arguments

Argument	Description	Required/ Optional
Cost	The cost of the asset.	Required
Date_purchased	The date of the purchase of the asset.	Required
First_period	The date of the end of the first period.	Required
Salvage	The salvage value at the end of the life of the asset.	Required
Period	The period.	Required
Rate	The rate of depreciation.	Required
Basis	The year basis to be used. Look at the Basis Table given below.	Optional

Basis Table

Basis	Date system
0 or omitted	360 days (NASD method)
1	Actual
3	365 days in a year
4	360 days in a year (European method)

Notes

Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2008,5,23) for the 23^rd day of May, 2008. Problems can occur if dates are entered as text.
Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.
This function will return the depreciation until the last period of the life of the assets or until the cumulated value of depreciation is greater than the cost of the assets minus the salvage value.
The depreciation coefficients are given in the Depreciation Coefficients Table below.
The depreciation rate will grow to 50 percent for the period preceding the last period and will grow to 100 percent for the last period.
If the life of assets is between 0 (zero) and 1, 1 and 2, 2 and 3, or 4 and 5, AMORDEGRC returns #NUM! error value.

Depreciation Coefficients Table

Life of assets (1/rate)	Depreciation Coefficient
Between 3 and 4 years	1.5
Between 5 and 6 years	2
More than 6 years	2.5

If the date_purchased is > first_period, AMORDEGRC returns #NUM! error value.
If salvage > cost, AMORDEGRC returns #NUM! error value.
If Invalid numbers are supplied for the salvage, period, rate or [basis] arguments (i.e. if either: salvage < 0, period < 0, rate ≤ 0, or [basis] is any number other than 0, 1, 2, 3 or 4), AMORDEGRC returns #NUM! error value.
If date_purchased or first_period are not valid Excel dates, AMORDEGRC returns #VALUE! error value.
If any of the specified arguments is non-numeric, AMORDEGRC returns #VALUE! error value.

Applicability

Excel 2007, Excel 2010, Excel 2013, Excel 2016

Example

advanced_excel_financial_functions.htm