Depreciation - Daily Straight Line

Daily straight-line depreciation depreciates the value of an equipment unit by the same percentage each day. Daily straight-line depreciation is computed as follows:

- Daily depreciation rate = (Original Cost – Salvage value + Capitalized Value) / number of days of life of asset

- number of days of life of asset is calculated from the in service date + number of life months as a days value. This will cover the case of leap years.

To set up this method the following data must be set in order to calculate the daily depreciation rate: Date and time In Service, Original cost and Deprecation Life Months.

It is not recommended to change deprecation method from DAILY STRAIGHT LINE to another method once depreciation has been started for the asset.