What is difference between asset smoothin , catch up and curb?

Question

Hi all
Cuold u pls help me regarding this Asset smoothing, catch up and curb?
Thanks in advance
reg
vishnu

Answer 1

Hi
With the smoothing method, the annual depreciation amount determined is distributed equally over the periods from the current posting period to the year end.
With the catch-up method, depreciation due on a transaction within the fiscal year (from the depreciation start date, according to period control, up to the current period) is posted in one total. The depreciation posting program posts this amount in the period in which the posting date of the acquisition lies.
With depreciation beyond the planned useful life, the depreciation percentage rate can be derived, not only from the planned useful life, but also from the actual useful life. This method produces a declining-balance effect instead of a straight-line effect (curb).
An asset that originally had a useful life of 10 years is depreciated in year 11 by 1/11 = 9.09 %, in year 12 by 8.33 % and in year n with 100/n %.
When you use below-zero depreciation with a curb, the system determines the percentage rate, after the end of planned life, to the exact period and not to the year