Half-year depreciation on additional acquisitions for Austria

This topic provides information for users in legal entities in Austria about the depreciation of additional acquisitions when the Half year convention is used for fixed asset depreciation.

In legal entities in Austria depreciation for additional acquisitions and acquisition adjustments is calculated according the following rules:

  • Amount of additional acquisitions posted in the year of initial acquisition is depreciated starting from the Depreciation run date (if a Fixed asset is purchased before June 30th and additional acquisition posted before June 30th or a fixed asset is purchased after July 1st and additional acquisition posted after July 1st) or from the July 1st if a fixed asset is purchased before June 30th and additional acquisition posted after July 1st.
  • Amount of additional acquisitions posted in the year later than year of initial acquisition is depreciated according to half year convention rule starting from the January 1st or the July 1st of the year where the additional acquisitions is posted.

Prerequisites

Prerequisite Information
Set up Depreciation profile Open Fixed assets > Setup > Depreciation profile. For depreciation profile with Depreciation method = Straight line life remaining, mark check box Half year depreciation on additional acquisitions. If this option is switched on, depreciation convention Half year (start year) is implemented for additional acquisitions.
Set up Fixed assets parameters Open Fixed assets > Setup > Fixed assets parameters. On the General tab, select the following parameters: Apply specific rules for half year depreciation , Automatically create depreciation adjustment amounts with disposal.

Half year depreciation on additional acquisitions calculation

When Apply specific rules for half year depreciation checkbox is marked, and Automatically create depreciation adjustment amounts with disposal checkbox is marked, the depreciation adjustment amount for fixed assets with Straight line life remaining depreciation method and Half year (start of year) convention used, is posted automatically with the disposal calculated according to the half year convention rules.