Linear or Constant Quotas

It is the most used depreciation method as it is accepted by the RFB – Federal Revenue of Brazil, according to Income Tax Rules and Normative Instructions and Additional Legislations.

Through this method, depreciation is calculated by dividing value to be depreciated by the time of asset useful life. Depreciation fee value is the same in all periods.

Calculation features:

The rate is fixed and established as a consequence of asset useful life.

Formulas to establish the rate:

Annual depreciation rate = 100% / Asset useful life

Monthly depreciation rate = (100% / Asset useful life) /12

Formula to establish depreciation value:

Annual depreciation = Asset Original Updated Value * Annual depreciation rate

Monthly depreciation = Asset Original Updated Value * Annual depreciation rate

Where:

Asset original value: asset acquisition value is considered as original value, depending on value updated, presenting extensions and revaluations incurred since acquisition.

Example of monthly depreciation calculation:

Asset Value                30,000.00        

Useful life (years)        05 year

Annual Rate                20%

Monthly Rate                1.67%