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The Excel AMORLINC Function
Basic Description
The Excel Amorlinc function calculates the prorated linear depreciation of an asset for each accounting period.
The function has been introduced into Excel for users of the French accounting system.
The syntax of the Amorlinc function is :
AMORLINC( cost, date_purchased, first_period, salvage, period, rate, [basis] )
Where the arguments are as follows:
| cost |
- |
The cost of the asset
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| date_purchased |
- |
The date of purchase of the asset
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| first_period |
- |
The date of the end of the first period
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| salvage |
- |
The salvage value, at the end of the asset's lifetime
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| period |
- |
An integer that specifies the period over which the depreciation is to be calculated
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| rate |
- |
The rate of depreciation of the asset
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| [basis] |
- |
An optional integer argument which specifies the financial day count basis that is used in the calculation.
Possible values are:
| Basis |
Day Count Basis |
| 0 (or omitted) |
US (NASD) 30/360 |
| 1 |
actual/actual |
| 2 |
actual/360 |
| 3 |
actual/365 |
| 4 |
European 30/360 |
The financial day count basis rules are explained in detail on the
Wikipedia Day Count Convention page
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Note that the date_purchased and the first_period arguments should be entered into the function as either:
- References to cells containing dates
or
- Dates returned from formulas
Warning:
| - |
If you attempt to input the date arguments as text, there is a chance that these
may be interpreted differently, due to the date system and date interpretation settings on your computer. |
| - |
Although you can enter dates as serial numbers, this is not recommended, as date serial
numbering varies across different computer systems. |
Excel Amorlinc Function Example
In the following example, the Excel Amorlinc 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.
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A |
B |
| 1 |
Purchase Date: |
01-Jan-2011 |
| 2 |
First Period Date: |
30-Sep-2011 |
| 3 |
=AMORLINC( 150, B1, B2, 20, 1, 20%, 4 ) |
The function returns the value 30.
- i.e. the asset depreciates by €30.00 during the first period.
Note that, in the above example, as recommended, the date arguments have been input to the function as references to
cells containing dates.
Further details of the Excel Amorlinc function can be found on the
Microsoft Office website.
Amorlinc Function Errors
If you get an error from the Amorlinc function, this is likely to be one of the following:
Common Errors
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#NUM!
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-
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Occurs if either:
| - | the date_purchased is > first_period |
| or | |
| - | the supplied salvage value is > cost |
| or | |
| - |
Invalid numbers are supplied for the salvage, period, rate or basis arguments
(i.e. if either: salvage < 0, period < 0, rate ≤ 0, or basis is any number other than 0, 1, 2, 3 or 4)
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#VALUE!
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-
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Occurs if either:
| - | any of the supplied arguments are non-numeric |
| or | |
| - | the date_purchased or the first_period arguments are not a valid dates |
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#NAME?
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-
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Occurs when Analysis ToolPak add-in is not enabled in your Excel.
You will need to enable the add-in if you want to use the Excel Amorlinc function.
To do this in Excel 2003 :
- From the Tools drop-down menu, select the option Add-Ins ...
- An 'Add-Ins' window will pop up. From this, select the option Analysis ToolPak and click OK
To do this in Excel 2007 or Excel 2010 :
- Click the Microsoft button on the top left of your spreadsheet and select
the Excel Options button
- From the menu on the left hand side, select Add-Ins
- In the 'Manage:' box, select Excel Add-ins and click Go...
- An 'Add-Ins' window will pop up. From this, select the option Analysis ToolPak
and click OK
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