Longevity expenses are amortized within the relevant asset's duration starting from the year in which they are activated.
For example, if you relate a longevity expense of 1000 TRY in 2013 to an asset having a 5-year economic life and purchased in 2012, the main asset's life expires in 2015; however, depreciation is calculated until 2017 due to longevity expense.
Expenses Prolonging Economic Life of the Asset
(Normal Depreciation Method)
Purchase Year | Purchase Value | Depreciation Rate | Depreciation | Accumulated Depreciation | Net Book Value |
2011 | 30.000,00 | 20 | 6.000,00 | 6.000,00 | 24.000,00 |
2012 | 30.000,00 | 20 | 6.000,00 | 12.000,00 | 18.000,00 |
2013 | 30.000,00 | 20 | 6.000,00 | 18.000,00 | 12.000,00 |
| 1.000,00 | 20 | 200,00 | 200,00 | 800,00 |
2014 | 30.000,00 | 20 | 6.000,00 | 24.000,00 | 6.000,00 |
| 1.000,00 | 20 | 200,00 | 400,00 | 600,00 |
2015 | 30.000,00 | 20 | 6.000,00 | 30.000,00 | |
| 1.000,00 | 20 | 200,00 | 600,00 | 400,00 |
2016 | 30.000,00 | 20 | 30.000,00 | ||
| 1.000,00 | 20 | 200,00 | 800,00 | 200,00 |
2017 | 30.000,00 | 20 | 30.000,00 | ||
| 1.000,00 | 20 | 200,00 | 1.000,00 |