Why different computation under SLM basis

(0) Share

Report

Posted on by Community Member

I created 2 assets Land & building(L&B) and Non compete fees(NCF)

Then computed Depreciation for these 2 different assets, both being on SLM basis.

Asset L&B is being computed on number of periods basis. However , the depreciation being computed varies based on the number of days in a month. For 30 days a different value appears and for 31 days the value changes

For asset NCF, depreciation is being calculated exactly based on number of periods of the asset life only. Hence the depreciation values for all the months are same.

I came across these while i checked Value Models>>Inquiries>>Profiles of both the assets.

Can anyone let me know what could be the reason between the difference in computation?

*This post is locked for comments

I have the same question (0)