Accounting Depreciation Schedule
Plan your depreciation charges and track the net value of your fixed assets · Straight-line · Declining balance · Units of production · Compliant with Revised SYSCOHADA and IFRS (IAS 16 / IAS 38).
| Year | Start value | Charge | Accum. depr. | NBV end | Entry |
|---|
What is accounting depreciation?
Depreciation is the accounting recognition of the loss in value of a fixed asset due to wear, time or obsolescence. It spreads the cost of acquiring an asset over its useful life, in line with the matching principle.
In Côte d'Ivoire, depreciation is governed by Revised SYSCOHADA (in force since 2018). Listed companies or subsidiaries of international groups may also be subject to IFRS IAS 16 / IAS 38.
The straight-line method — the most common
The straight-line method spreads the depreciable base in equal charges over the asset's whole life. It is SYSCOHADA's reference method and the most used in practice in Côte d'Ivoire.
Straight-line rate = 1 ÷ Life × 100
| Asset category | Usual life in CI | Straight-line rate |
|---|---|---|
| Office buildings / warehouses | 20 to 50 years | 2% to 5% |
| Industrial machinery and equipment | 5 to 10 years | 10% to 20% |
| Vehicles and rolling stock | 3 to 5 years | 20% to 33% |
| IT equipment | 3 to 5 years | 20% to 33% |
| Furniture and fittings | 5 to 10 years | 10% to 20% |
| Software and licences | 1 to 3 years | 33% to 100% |
The declining-balance method — fast-depreciating assets
The declining-balance method applies a higher rate early in the asset's life, then switches to straight-line when that becomes more favourable. It suits technology equipment that loses value quickly.
Charge year N = NBV start of year × Declining-balance rate
Switch: if NBV ÷ Remaining years > Declining-balance charge
| Life | SYSCOHADA coefficient | Declining-balance rate example |
|---|---|---|
| 3 to 4 years | 1,5 | 33% × 1,5 = 50% |
| 5 to 6 years | 2,0 | 20% × 2 = 40% |
| 7 years or more | 2,5 | 14% × 2,5 = 35% |
The units-of-production method
This method links depreciation to the asset's actual use rather than to time. It is relevant for vehicles (km), industrial machines (hours) or production equipment (units).
Charge year N = Unit rate × Actual usage in year N
Revised SYSCOHADA — specific rules in Côte d'Ivoire
| Rule | Revised SYSCOHADA provision |
|---|---|
| Residual value | Zero unless significant and reliable SYSCO |
| Pro rata temporis | Mandatory for the first and last year |
| Useful life | Actual useful life (not tax life) |
| Components | Component split mandatory if components are significant |
| Review | Mandatory if an estimate changes (prospective) |
| Accounts | Class 2 — Accounts 28xx for depreciation |
SYSCOHADA vs IFRS — the key differences
| Criterion | SYSCOHADA SYSCO | IFRS IAS 16 |
|---|---|---|
| Residual value | Zero by default | Estimated at each closing |
| Measurement model | Historical cost | Cost or revaluation |
| Impairment test | If there is an indication of loss | IAS 36 — mandatory if there is an indication |
| Components | Recommended | Mandatory |
| Goodwill | Amortised over 20 years max | Not amortised — annual IAS 36 test |
| Start-up costs | Intangible asset amortised | Charge for the year |
SYSCOHADA accounting entries
At each year-end, the depreciation charge is recorded as follows:
| Account | Description | Debit | Credit |
|---|---|---|---|
| 6813 | Depreciation charge — Tangible fixed assets | Charge amount | — |
| 281x | Depreciation of tangible fixed assets | — | Charge amount |
For intangibles: debit 6812 / credit 280x.
