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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 assets 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:

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

Purchase date: 1st March 2016

Depreciation Start Date: 1st July 2016

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:

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

Purchase date: 1st July 2016

Depreciation Start Date: 1st July 2016

Depreciation Term: the useful life of the asset

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