Does Asset.Guru support the Half Year Convention for Depreciation?

Yes, Asset.Guru supports a number of depreciation methods, including the 50% method, also known as the half year convention for depreciation.

What is the half year convention for depreciation?

This is a depreciation schedule that treats an asset as having been acquired exactly in the middle of the calendar year. This means that only half of a full years depreciation is incurred in the first year and the last year of the asset's life. 

How do I apply the half year convention rule to my assets in Asset.Guru?

For assets purchased on or prior to the 1st of July, simply select the 1st of July as the Depreciation Start date.  

Example (fiscal year ending 31 Dec):

A business purchases an asset on the 1st of March and wants to apply the 50% rule. 

Purchase date: 1st March 2021

Depreciation Start Date: 1st July 2021

Depreciation Term: the useful life of the asset

For assets purchased after the 1st of July, enter the 1st of July as the purchase date and the depreciation start date.

Example (fiscal year ending 31 Dec):

A business purchases an asset on the 15th August and wants to apply the 50% rule. 

Purchase date: 1st July 2021

Depreciation Start Date: 1st July 2021

Depreciation Term: the useful life of the asset

* For the assets purchased in the second half of the year, the Description Field can be used to track the actual Purchase Date of the asset if needed.