Microsoft Office Tutorials and References
In Depth Information
Variable-declining balance. Computes the depreciation of
an asset for any period (including partial periods) using the
double-declining balance method or some other method you
specify.
cost, salvage, life,
start period, end
period, [factor], [no
switch]
VDB
* Arguments in brackets are optional.
The arguments for the depreciation functions are described as follows:
cost: Original cost of the asset.
salvage: Salvage cost of the asset after it has fully depreciated.
life: Number of periods over which the asset will depreciate.
period: Period in the life for which the calculation is being made. The VBD function uses two arguments:
start period and end period .
month: Number of months in the first year; if omitted, Excel uses 12.
factor: Rate at which the balance declines; if omitted, it is assumed to be 2 (that is, double-declining).
no switch: True or False. Specifies whether to switch to straight-line depreciation when depreciation is
greater than the declining balance calculation.
Figure 12-13 shows depreciation calculations using the SLN, DB, DDB, and SYD functions. The asset's origin-
al cost, \$10,000, is assumed to have a useful life of ten years, with a salvage value of \$1,000. The range labeled
Depreciation Amount shows the annual depreciation of the asset. The range labeled Value of Asset shows the
asset's depreciated value over its life.
Figure 12-14 shows a chart that graphs the asset's value. As you can see, the SLN function produces a straight
line; the other functions produce curved lines because the depreciation is greater in the earlier years of the as-
set's life.
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