Depreciation methods

Because of local reporting requirements, international financial reporting standards (IFRS), and local taxation reporting requirements, various algorithms can be used to calculate depreciation:
  • Straight Line
  • Reducing Balance
  • Straight Line
  • Usage
  • Sum of Digits (rule of 78)
  • MACRS
  • ACRS
  • Reducing Balance switching to Straight Line
  • Double Declining Balance switching to Straight Line

Straight Line and Reducing Balance are the most common depreciation methods in use. The co-existence of corporate and taxation depreciation calculations is required.

Different base values are used for depreciation, such as acquisition value, 50% of acquisition value, replacement value, and 50% of replacement value.

How Infor meets this requirement

See Asset Accounting setup in Financials Setup and Administration Guide.