The Excel AMORDEGRC Function

Related Function:
AMORLINC

Function Description

The Excel Amordegrc function is provided for users of the French accounting system.

The function calculates the prorated linear depreciation of an asset for a specified accounting period.

The syntax of the Amordegrc function is:

AMORDEGRC( cost, date_purchased, first_period, salvage, period, rate, [basis] )

Where the arguments are as follows:

cost-The cost of the asset.
date_purchased-The date of purchase of the asset.
first_period-The date of the end of the first period.
salvage-The salvage value at the end of the lifetime of the asset.
period-The number of the period over which the depreciation is to be calculated.
rate-The asset's rate of depreciation.
[basis]-An optional integer argument which specifies the financial day count basis to be is used. This may be any of the following values:
BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
1actual/actual
2actual/360
3actual/365
4European 30/360
For a detailed description of the financial day count basis rules, see the Wikipedia Day Count Convention page

Warning: If text representations of dates are entered into Excel functions, Excel may interpret them differently, depending on the date system, or date interpretation settings on your computer. Therefore, it is recommended that the date_purchased and first_period dates be entered into the Amordegrc function as either:

• References to cells containing dates
or
• Dates returned from formulas.

Excel Amordegrc Function Example

In the following example spreadsheet, the Excel Amordegrc function is used to calculate the depreciation of an asset during the first period. The asset was purchased on 01-Jan-2015, at a cost of €150 and the first period ends on 30-Sep-2015. The asset depreciates at a rate of 20% per year and has a salvage value of €20. The European 30/360 day count basis is used.

AB
1Purchase Date:01-Jan-2015
2First Period Date:30-Sep-2015
3=AMORDEGRC( 150, B1, B2, 20, 1, 20%, 4 )

The above Amordegrc function returns the value 42.

I.e. the asset depreciates by €42.00 during the first period.

Note that, as recommended, the date arguments have been supplied to the Amordegrc function as references to cells containing dates.

See the Microsoft Office website for further information and examples of the Excel Amordegrc function.

Amordegrc Function Errors

If you get an error from the Amordegrc function, this is likely to be one of the following:

Common Errors
 #NUM! - Occurs if either:The date_purchased is > first_period;The supplied salvage value is > cost;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). #VALUE! - Occurs if either:The supplied date_purchased or first_period arguments are not valid Excel dates;Any of the supplied arguments are non-numeric.