Calculating NBV-oriented depreciation

The Net book-value (NBV) oriented depreciation method is a variant of the declining balance depreciation method based on European requirements.

In this method, the declining balance percentage is always set for a period of one year. The formula that is used to calculate NBV-oriented depreciation is as follows:

depreciation amount = net book value * declining percentage / 100

When you define this depreciation method, you must enter a depreciation percentage of less than 100%.