Free Download: Fixed Asset Continuity Schedule Template

Description
This is a useful Excel template to calculate the net book value of fixed assets and the annual depreciation expense on a straight-line basis using assumptions around capital additions, asset salvage value and useful life. This template calculates depreciation expense over a 10-year period for existing assets held at the beginning of the forecast period and for subsequent new additions.

Depreciation represents the reduction in the value of an asset as it is used or consumed. A depreciation schedule calculates the depreciation expense over the asset's useful life. There are several different depreciation methods, but the most common type is straight-line depreciation. Under this method, the cost of the asset is decreased by an even amount each year until the value is reduced to zero (or its salvage value). Salvage value is the value of the asset at the end of its useful life. It can often be thought of as the value the asset can be sold for at the end of its useful life.

The formula for depreciation is: depreciation expense = (Asset cost - Salvage value) / Asset useful life.

The depreciation schedule is constructed as a waterfall, meaning capital expenditures each year are depreciated separately from other years.