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Fixed Asset and Depreciation Analysis

This template summarizes the changes in fixed asset and accumulated depreciation accounts during the period.  It also is used to compute average fixed asset balances by property class for a predictive test of depreciation expense using the straight-line depreciation method and other analytics applicable to fixed assets and depreciation expense.

Entering Data

On the Summary Input and Detailed Input worksheets, enter data in the non-shaded (white) cells only. The shaded cells perform the workbook’s calculations. For each asset class that is used, type “0" for each applicable cell that has a zero balance. Blank cells on the two input worksheets will not be included in the calculations on the Analysis worksheet.
The top section of the Summary Input worksheet is for entering the beginning balance, additions, disposals, salvage value percentage, and useful life for each applicable asset class. The amounts entered should be the gross amounts before depreciation. All amounts in this section should be entered as positive amounts except for “disposals,” which should be entered as a negative number.
The middle section of the Summary Input worksheet is to enter data for the current year and prior years to enable the workbook to perform necessary data for accumulated depreciation. In this section, enter negative amounts for beginning accumulated depreciation and the additions column. (The accumulated depreciation entered in the “Additions” column represents the amount of depreciation recognized for fixed assets held at the beginning of the year and fixed assets acquired during the year.) For fixed assets disposed during the year, enter the accumulated depreciation as a positive amount in the “Disposals” column.
Use the bottom section of the Summary Input worksheet to enter certain data for the current year and prior years to enable the workbook to perform various analytics.
The Detail Input worksheet is used to compute average gross fixed asset balances (before accumulated depreciation) by property class for a predictive test of depreciation expense and other analytics presented in the Analysis worksheet. The precision of the calculations is increased by entering data at a more disaggregated level (for example, monthly or quarterly vs. annually or semi-annually). At the top of the worksheet is a “drop-down” list box. From this list box, select the desired level of detail you need based on the amount and timing of significant additions or disposals of fixed assets. For example, if there was a significant fixed asset addition or disposal during the year because of a major event in the first quarter, selecting either the "Monthly" or "Quarterly" input frequency will result in a more precise average fixed-asset cost calculation. If additions and disposals are smaller, or occur ratably throughout the year, selecting a "Semi-annual" or "Annual" input frequency may provide an adequate level of precision.
The precision you get may vary by class of property. For example, you may want to enter monthly balances for leasehold improvements if there were significant changes but only annual data for buildings, which did not change. Select the highest frequency you plan to use. Within that view you can enter data less frequently for certain classes of property. For example, select “monthly” if you plan to enter data by month for any class of property. Within the monthly view, you can enter quarterly data for a property class by entering values for March, June, September, and December (Month 3, Month 6, Month 9, and Month 12).
No data should be entered on the Analysis worksheet. This worksheet calculates the ratios and analytics based on the data input on the other two worksheets.

Inserting and Deleting Line Items

Input rows cannot be added or deleted. Such changes in the number of rows may compromise the integrity of the workbook’s calculations.