Issue:

How to process depreciation for assets using diminishing value method in Class?

Resolution:

The following formula is used for the diminishing value method:

Base value × (days held ÷ 365) × (200% ÷ asset’s effective life)

Days held can be 366 for a leap year.

As Class does not have a field for effective life of the investment, you will need to calculate the Depreciation Percentage manually. 

Worked example: 

If the asset purchased on 7th December 2023 at a cost of $1,000 and has an effective life of 4 years, the claim for the first year FY2024 will be:

$1,000 × (207 ÷ 366) × (200% ÷ 4) = $1,000 x 56.56% × 50% = $282.78

The claim for the second year will be:

($1000 - $282.78) × (365 ÷ 365) × (200% ÷ 4) = $717.22 × 50% = $358.61