Excel template for fixed asset depreciation

Excel template for fixed asset depreciation

This article provides details of Excel template for fixed asset depreciation that you can download now.

Microsoft Excel software under a Windows environment is required to use this template

These Excel templates for fixed asset depreciation work on all versions of Excel since 2007.

Examples of a ready-to-use spreadsheet: Download this table in Excel (.xls) format, and complete it with your specific information.

To be able to use these models correctly, you must first activate the macros at startup.

The file to download presents four Excel template for fixed asset depreciation

• IFRS Fixed Assets Register Template Excel

This comprehensive template enables users to compile a complete fixed assets register which incorporates an unlimited number of fixed asset classes and categories; facilitates recording additions, disposals, revaluations and impairments; automatically calculates monthly and year-to-date depreciation charges; calculates tax values based on user defined tax codes; calculates deferred tax balances and includes a comprehensive automated journal report. The template has been designed specifically for the requirements of IFRS but can also be used to compile a simple fixed asset register which is only based on historical costs.

• Fixed Assets Depreciation Worksheet

This is a worksheet designed to assist you in determining depreciation expenses. The Purchase Area Development does not make any warranty or representation, expressed or implied, with respect to the accuracy, completeness, or usefulness of the results or assumes any liabilities with respect to the use of, or for damages resulting from the use of any results derived in this worksheet!

• Template Excel Fixed Asset and Depreciation Schedule

"This worksheet is intended to assist in tracking an organization's fixed assets and annual depreciation estimates.

Note: the template assumes that all assets are depreciated on a straight-line basis. For simplicity, an asset's depreciation estimate for its first and last years in service will be calculated at a half-year's rate regardless of how many months the asset was actually in service."

Template Excel Fixed Asset Record With Depreciation       

Fixed assets represent a part of the business assets of the company and its long-term property, which cannot be easily liquidated (converted into cash). Their characteristics are:

1. Their service period is longer than one year,
2. Their turnover coefficient is less than one,
3. They are gradually consumed during their service period, and
4. Only their depreciable value is allocated to a new

The following items are the examples of general categories of fixed assets:

1. Buildings,
2. Computer equipment,
3. Computer software,
4. Land,
5. Machinery,
6. Perennial plants
7. Vehicles,
8. Patents,
9. Means of transport,
10. Licenses,

CLASSIFICATION OF FIXED ASSETS

The most commonly used criteria for the classification of fixed assets are:

1. the state of assets and their degree of usability,
2. their form,
3. source of the

Depending on the state of the assets and their degree of usability, fixed assets can be:

1. In preparation (i.e. under construction, assembly) - These are ongoing investments, where fixed assets are prepared for their future functions;
2. In function - Their work enables the execution of the company business tasks;
3. Out of use - Assets that are not used temporarily for certain reasons;
4. Unusable fixed assets - Assets that are fully depreciated and can no longer be used for the purpose for which they were

According to the form of fixed assets, they are divided into:

1. Tangible assets - physical items with a clear purchase value used by a business to produce goods and services (furniture, computers, machinery, );
2. Intangible assets are non-physical items which help a business generate revenue (patents, copyrights, concessions and trademarks);

3. Cash assets - part of fixed assets that are formed under special circumstances and related to fixed assets, such as: allocated funds for investments in fixed assets, depreciation cash assets, cash collected from the sale of fixed assets or insurance organizations for incurred damages on fixed assets,

Depending on the source of the supply, fixed assets are classified as those obtained from:

1. own sources (capital, reserves, depreciation fund and funds obtained by sale of securities),
2. borrowed sources (loans).

VALUES OF FIXED ASSETS

A fixed asset has corresponding value. Basically, the value of a fixed asset represents its price that is used for its recording and tracking in the business books of the company.

Fixed assets are recorded by:

1. their book value,
2. their depreciated value,
3. their net book

The book value is the value at which a fixed asset is purchased. This value is mainly used for recording and tracking of fixed assets. Its calculation depends on the way in which fixed assets are obtained. There are three usual ways in which fixed assets are obtained:

1. They can be purchased from a supplier,
2. They can be produced by the company itself
3. They can be donated

If a fixed asset is purchased from a supplier, then the book value consists of invoice value and the costs of acquisition.

Book value = invoice value + costs of acquisition

The invoice value is the price of a fixed asset that is indicated in the invoice of the supplier from whom the asset was purchased. Having in mind the fact that large number of suppliers offers a discount for advance payment, the invoice value can be gross and net. The gross invoice value is the full price of a fixed asset without a discount. The net invoice value is a gross invoice value reduced by a discount.

The costs of acquisition are all costs related to the purchase of fixed assets and costs required to put them into use or, in other words, all costs incurred from the moment when a fixed asset is purchased from a supplier to the moment when it is put into use. These costs include: delivery costs, handling charges, forwarding charges, transport charges, loading charges, customs duties and taxes, costs of training personnel for the use of a  fixed asset, etc.

Example: Company "A" purchased machine from the supplier for 50,000 euros. The transport costs are paid 10,000 euros and the installation costs 5,000 euros. Calculate the book value of the machine.

Book value = invoice value + costs of acquisition = 50,000 + 10,000 + 5,000 = 65,000

If a fixed asset is produced by a company itself, then the calculation of the book value consists of two steps. In the first step all cost incurred during the production of a fixed asset have to be summed in order to determine the cost price. After that, the cost price should be compared with the current market price of such a fixed asset and the lower value should be used as the book value, because the upper limit of the book value is the price of the asset formed at the market. All costs above that limit are the result of a company’s miscalculation that it can save some money by producing a fixed asset by itself. They should not be incorporated in the book value because they are the result of subjective factors.

In the case when a company receives a fixed asset from i.e. long-standing partners free of charge or, in other words, as a present, the basis for calculation of the book value is the market price of a used fixed asset with a similar degree of  wear and tear. Then, the costs of acquisition should be added to the basis obtained in this way in order to calculate the book value.

The next fixed asset value that is used for recording in business books is depreciated value. This is the written off value of fixed asset during its previous usage.

Finally, there is the net book value of fixed assets. This value represents the actual value of the fixed asset at a particular point in time. It is a non-depreciated portion of fixed assets. It is calculated when the book value is reduced by the total amount of depreciation calculated up to that specific moment.

Net book value = Book value – Accumulated depreciated value

DEPRECIATION – DEFINITION AND ECONOMIC ASPECTS

Calculation of fixed asset expenditure and allocation of its consumption value on the generated output (products, services) is realized through depreciation. Depreciation is defined as a financial expression of fixed assets consumption in the process of reproduction.

Otherwise, depreciation can be observed in two ways as a:

1. cost of fixed assets, and
2. source of investment

On the one hand, depreciation reflects the expenditure of fixed assets in the reproduction process, and, on the other, calculated depreciation is not paid to anyone outside the company, but these financial assets are transferred to the depreciation fund. The depreciation fund is used for the replacement of the existing worn-out assets and purchase of new fixed assets, maintenance of assets, repairs and for other purposes.

In this respect, we distinguish between:

1. simple reproduction of fixed assets,
2. expanded reproduction of fixed

If the depreciation fund is used exclusively for the replacement of worn-out fixed assets, then it is a simple reproduction. On the other hand , if the depreciation fund is used not only for the replacement of worn-out fixed assets, but also for the purchase of new fixed assets (aimed at capacity expansion), then such company has expanded reproduction of fixed assets.

DEPRECIATION CALCULATION ELEMENTS

The basic elements for the calculation of depreciation are:

1. depreciation basis ,
2. service period (t),
3. generated output (∑Q).

The basis for depreciation calculation is the book value, because it should be depreciated during the service period. The service period is the period in which the fixed asset should serve its purpose. A correct estimate of the service period ensures the objectivity of the depreciation calculation. It depends on many objective and subjective factors such as: the type of fixed asset, the quality of materials, the nature of technological process, the intensity of use, the way of handling and maintenance, quality of fixed asset and the skill of the fixed asset user. When a company can estimate generated output of fixed asset usage in service period, then, instead of the time dimension, the generated output can be used as an element for the depreciation calculation. In certain circumstances, the expected output can be known in advance or naturally given, like the quantity of ore in some ore deposit.   In this case, the depreciation calculation is based on the calculation of the depreciation amount per unit of output.