Excel - Microsoft Excel Amordecrc Function

Description

The Excel Amordegrc function calculates the prorated linear depreciation of an asset for each accounting period, with a depreciation coefficient applied, depending on the life of the asset. The function has been introduced into Excel for users of the French accounting system. 

The syntax of the Amordegrc function is : 

AMORDEGRC( cost, date_purchased, first_period, salvage, period, rate, [basis] ) 

Where the arguments are as follows: 

Note that the date arguments should be entered into the function as either: 

• References to cells containing dates

or 

• Dates returned from formulas

Warning: 

Excel Amordegrc Function Example

In the following example, the Excel Amordegrc function is used to calculate the depreciation of an asset during the first period. The asset was purchased on 01-Jan-2011, at a cost of €150 and the first period ends on 30-Sep-2011. The asset depreciates at a rate of 20% per year and has a salvage value of €20. The European day count basis is used. 

The function returns the value 42. 

- i.e. the asset depreciates by €42.00 during the first period. 

Note that, as recommended by Microsoft, the date arguments have been input to the above function as references to cells containing dates. 

Amordecrc Function Errors

If you get an error from the Amordegrc function, this is likely to be one of the following: 

Common Errors