Where can I enter amortisations in The Business Plan Shop?
It is currently not possible to enter amortisations directly in The Business Plan Shop.
The software automatically calculates the amortisations of your fixed assets using the following data:
- The asset's acquisition price
- The residual value of the asset at the end of its economic life
- The economic life of the asset
Amortisations is calculated as follows: amortisations = (purchase price - residual value) / economic life
Accelerated amortisation is a tax advantage granted by certain governments to encourage companies to invest.
Accelerated amortisation allows the company to record a higher amortisation charge in its income statement at the beginning of the asset's life and thus reduce its taxable income. This mechanism is neutral over the life of the asset: amortisation is higher at the beginning, but lower at the end.
You can use a combination of provisions and other balance sheet items to simulate accelerated amortisations in The Business Plan Shop.
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