Depreciation Schedule

About this template

Straight-line and declining balance in one table

Three sheets: ‘Dashboard’ · ‘Input data’ · ‘Usage guide’. ‘Input data’ does the work, one row per asset. Thirteen columns run No. · Asset code · Asset name · Account · Acquired on · Acquisition cost · Useful life · Method · Rate · Depreciation · Opening accum. dep. · Closing accum. dep. · Closing book value. The eight sample assets mix five straight-line with three declining balance.

Filling order

1. Enter Asset code, Asset name and Account (column D). Account is the grouping key, so keep to the statement names.
2. Put acquisition tax and delivery and installation costs into Acquisition cost (column F), then Useful life (column G).
3. Write Straight-line or Declining balance in Method (column H), exactly as it stands — those words are what the formula branches on. For declining balance, type Rate (column I) yourself; for straight-line the formula fills it.
4. Enter last year’s closing total in Opening accum. dep. (column K); the rest follows.

How the formulas run

• The straight-line rate is =ROUND(1/G2,3) — 0.2 over five years.
• Depreciation =IF(H2=”Straight-line”,ROUND(F2*I2,0),ROUND((F2-K2)*I2,0)). Straight-line multiplies the acquisition cost; declining balance the undepreciated balance (acquisition cost − opening accumulated depreciation). What is multiplied is the whole difference between the methods.
• Closing accum. dep. =K2+J2, Closing book value =F2-L2.
• The straight-line server takes 3,720,000 every year; the declining-balance CNC machining center multiplies the balance left after 45,410,667 by 0.313 to give 12,704,461, and shrinks each year after.

The declining-balance rate is not calculated

The declining-balance rate is not derived: it is a value set out in the table appended to the Enforcement Rules of the Corporate Tax Act (KR), used as published — 4 years 0.528 · 5 years 0.451 · 6 years 0.394 · 8 years 0.313 · 10 years 0.259. Korean tax law also sets a standard useful life by asset type, adjustable within ±25% on filing. A method filed for an asset must then be applied consistently, and buildings and intangible assets may use straight-line only. An asset bought part way through a fiscal year is prorated in its first year by months in use ÷ 12 — sample row 9, laptops acquired in July 2025, carries half a year, 2,700,000.

Checking the year’s charge on the dashboard

The metric cards read column J: 8 assets · total 69,498,047 · average 8,687,256 · max 29,600,000. Summary by account gives Fixtures 10,670,000 across three assets · Machinery 15,019,285 across two · Leasehold improvements 29,600,000 · Vehicles 9,408,762 · Intangibles 4,800,000, which maps onto the closing entries. Below it, ‘Depreciation by year (KRW m)’ holds 2024 112 · 2025 96 · 2026 78 · 2027 61 — the four value rows typed in, only Total 347 and Average 86.75 formulas. A book weighted toward declining balance produces that falling shape, and reported profit rises with it.

What goes wrong

• Abbreviating the method — the formula compares the exact words, so anything else falls through to the declining-balance branch.
• Deriving the declining-balance rate as 1 ÷ useful life. It differs sharply from the published value.
• Leaving a fully depreciated asset at a book value of 0. Sample row 8, the head office fit-out, is in that state; practice is to keep a memorandum value of KRW 1,000 until disposal, so write the last year’s charge KRW 1,000 lower.
• Listing small assets of KRW 1,000,000 or less per transaction unit. Expense them in the year they are put into use.