https://issues.apache.org/ooo/show_bug.cgi?id=109420

drking <[email protected]> changed:

           What    |Removed                     |Added
----------------------------------------------------------------------------
                 CC|                            |[email protected]

--- Comment #9 from drking <[email protected]> ---
This page gives the US IRS system, including some maths

http://www.irs.gov/publications/p946/ch04.html#en_US_2013_publink1000107554 

eg: the section "Figuring the Deduction Without Using the Tables"

Excel, Gnumeric, LibreOffice, ODFF and everywhere else I've looked
spectacularly fail to explain the function - I think it was thrown in by
Microsoft simply so they could say they had a lot of functions. It's unuseable
without a proper explanation, if fractional periods are given.

Certainly it looks as if when I did the wiki writeup for Ooo I didn't
understand the half year convention well enough.

Of course calculating to half years, half months etc is a matter of convention
and definition - there are several ways it could be done - and there's nothing
to say that the US system is 'right' - perhaps eg Patagonia have a better
system. This is interntaional software.

However I guess that Excel try to duplicate IRS policy, so that should be the
target. Though what would happen if the IRS changed their policy? It does need
a clearer write-up.

The other issue is that calcualting between periods 0.5-2.0 for example is
probably meaningless, although should be defined. Maybe the aim should be to
get a current asset value for any given start/end period and take the
difference. For example (I think) the asset value at endperiod 1.5 could be
defined as using the half year convention (because it's got a half in it) so is
calculated using a first year's depreciation based on half a year. 1.2 could be
a linear interpolation between some 2 periods (which?)

It certainly needs some careful thinking about.

One idea would be to examine Gnumeric's code - it's quite easy to read I think,
and maybe someone clever really thought about this before. Just to save
re-inventing the wheel and help understand the thing.

And after all this, no-one will use the function....

-- 
You are receiving this mail because:
You are on the CC list for the issue.
You are the assignee for the issue.
You are watching all issue changes.

Reply via email to