Amortization

Here are some examples of usage duration that you can apply to amortizable expenses:

• Main structure: 75 years
• Facade: 75 years
• Electrical installation: 30 years
• Waterproofing (windows): 25 years
• Roofing: 25 years
• Heating: 20 years
• Plumbing: 20 years
• Interior fittings: 12 years
• Works: 10 years
• Fitted kitchen: 10 years
• Appliances: 5 years
• Furniture: 5 years
• Other small equipment: 5 years

Examples of calculation

To calculate the amortization of a fitted kitchen worth £10,000 over a period of 10 years, you can use the straight-line amortization method. This method evenly distributes the cost over the amortization period. Here is how you can calculate it:

• Base amount of the expense: £10,000
• Duration of amortization: 10 years
• Start date of amortization: 15 June 2021

To determine the annual amortization, divide the total amount of the expense by the duration of amortization:

Annual amortization = Amount of the expense / Duration of amortization Annual ; amortization = £10,000 / 10 years Annual amortization = £1,000 per year.

Thus, you will amortize £1,000 each year for the 10 years following 15 June 2021. This means that for the year 2021 (the start year), you will amortize a portion of £1,000, pro rata. The calculation formula for the first year is: Base amount x Rate x (Time/360). So, in the case of the example: £1,000 x 100% x (16 + 30 + 30 + 30 + 30 + 30 + 30 / 360) = £544.44

For each subsequent year until 2031, you will also amortize £1,000.