Amorlinc Function

Purpose

Return value

Syntax

=AMORLINC(cost,purchase,first,salvage,period,rate,[basis])

• cost - Asset cost.
• purchase - Asset purchase date.
• first - End date of first period.
• salvage - Asset salvage value.
• period - The period for which to calculate depreciation.
• rate - Rate of depreciation.
• basis - [optional] Day count basis (see below, default =0).

Using the AMORLINC function

The Excel AMORLINC function returns the depreciation for a given accounting period. This function is provided for the French accounting system. Depreciation is prorated based on the date an asset is purchased in the first period.

Example

In the example shown, an asset was purchased on June 30, 2019 at an initial cost of $10,000. The end of the first period is December 31, 2019 and the depreciation rate is 20% per year. The salvage value is $1000, and the basis is European 30/360. The formula in F7, copied down the table is:

=AMORLINC($C$5,$C$6,$C$7,$C$8,E7,$C$9,$C$10)

Notice with the exception of the period numbers in column E, the other arguments use absolute references to prevent changes when copying.

For period zero, the depreciation is prorated based on a purchase date midway through the year, so the AMORLINC function returns $1,000. The full table of results looks like this:

Entering dates

In Excel, dates are serial numbers . Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid dates directly inside a function, you can use the DATE function . To illustrate, the formula below has all values hardcoded, and the DATE function is used to supply each of the two required dates:

=AMORLINC(10000,date(2019,6,30),date(2019,12,31),1000,3,0.2,4)

Note the above formula returns depreciation in period 3.

Basis

The basis argument controls how days are counted. The DISC function allows 5 options (0-4) and defaults to zero, which specifies US 30/360 basis . This article on wikipedia provides a detailed explanation of available conventions.

Notes

• AMORLINC will return #VALUE if any dates are invalid.
• AMORLINC returns #NUM if: cost <= salvage rate <= 0 basis is not 0-4

Purpose

Return value

Syntax

=COUPDAYBS(settlement,maturity,frequency,[basis])

• settlement - Settlement date of the security.
• maturity - Maturity date of the security.
• frequency - Number of coupon payments per year (annual = 1, semi-annual = 2, quarterly = 4).
• basis - [optional] Day count basis (see below, default =0).

Using the COUPDAYBS function

Historically, bonds were printed on paper with detachable coupons. The coupons were presented to the bond issuer by the bondholder to collect periodic interest payments. The Excel COUPDAYBS function returns the number of days from the start of the coupon period to the settlement date.

The settlement date is the date the investor takes possession of a security. The maturity date is the date when the investment ends and the principle plus accrued interest is returned to the investor. The frequency is the number of interest payments per year. Basis specifies the method used to count days (see below). In the example shown, the formula in F6 is:

=COUPDAYBS(C6,C7,C10,C11)

COUPDAYBS returns an integer, so use a number format and not a date format to display properly.

Entering dates

In Excel, dates are serial numbers . Generally, the best way to enter valid dates is to use cell references, as shown in the example. To enter valid dates directly, you can use the DATE function . Below is the formula in F6 reworked with hardcoded values and the DATE function:

=COUPDAYBS(DATE(2019,2,15),DATE(2024,1,1),2,0)

With these inputs, COUPDAYBS returns the same result as above.

Basis

The basis argument controls how days are counted. The COUPDAYBS function allows 5 options (0-4) and defaults to zero, which specifies US 30/360 basis . This article on wikipedia provides a detailed explanation of available conventions.

Notes

• In Excel, dates are serial numbers .
• All arguments are truncated to integers, so for example, time is ignored.
• If settlement or maturity dates are not valid, COUPDAYBS returns #VALUE!
• If basis is out-of-range , COUPDAYBS returns #NUM!
• If maturity date is not later than settlement date, COUPDAYBS returns #NUM!