Corporate financial accountants working with French GAAP (Plan Comptable Général), European holding entities, or cross-border asset holding structures frequently encounter unique statutory depreciation rules. Unlike standard US straight-line (SLN) or double-declining balance (DDB) methods, French tax law establishes specific mathematical conventions for assets acquired mid-year (using exact pro-rated day counts) and mandates declining coefficients calibrated explicitly to asset lifespan brackets.
To eliminate manual tax table lookups and complex conditional logic, Google Sheets provides two specialized accounting functions: AMORLINC (French linear depreciation) and AMORDEGRC (French declining-balance depreciation). This guide details their mathematical coefficients, syntax rules, parameter definitions, and corporate spreadsheet implementations.
Understanding French Depreciation Mechanics
The French accounting system treats depreciation through two specific statutory models:
- Linear Depreciation (AMORLINC): Calculates linear depreciation based on an exact day-count proration from the asset’s purchase date to the end of the first fiscal period. Subsequent periods depreciate evenly until remaining book value reaches salvage value.
- Declining Depreciation (AMORDEGRC): Applies an escalating statutory multiplier (coefficient) to the linear rate based on asset lifespan:
- Lifespan 3 to 4 years: Coefficient = 1.25
- Lifespan 5 to 6 years: Coefficient = 1.75
- Lifespan greater than 6 years: Coefficient = 2.25
Syntax and Parameter Breakdown
1. AMORLINC Syntax
=AMORLINC(cost, purchase_date, first_period_end, salvage, period, rate, [day_count_convention])
2. AMORDEGRC Syntax
=AMORDEGRC(cost, purchase_date, first_period_end, salvage, period, rate, [day_count_convention])
Parameter Reference
- cost: Initial acquisition cost of the asset (e.g.
50000). - purchase_date: Date when the asset was purchased (e.g.
DATE(2026, 4, 15)). - first_period_end: Closing date of the first fiscal year (e.g.
DATE(2026, 12, 31)). - salvage: Residual salvage value at the end of asset life.
- period: The specific fiscal period to calculate depreciation for (
0for pro-rated initial period,1for second year, etc.). - rate: Statutory depreciation rate (decimal, e.g.
1 / lifespan:0.20for a 5-year asset). - day_count_convention (optional):
0(US 30/360),1(Actual/Actual),3(Actual/365),4(European 30/360).
Step-by-Step Practical Implementation
Suppose your firm acquires industrial manufacturing hardware for €100,000 with zero salvage value over a 5-year expected lifespan (Rate = 20%):
- Purchase Date: 15 May 2026
- First Fiscal Period End: 31 December 2026
Set up your Google Sheets calculation table:
A1: Asset Cost | B1: 100000
A2: Purchase Date | B2: =DATE(2026, 5, 15)
A3: First Year End | B3: =DATE(2026, 12, 31)
A4: Salvage Value | B4: 0
A5: Annual Rate | B5: 20%
A6: Period 0 (Pro-rated)| B6: =AMORDEGRC(B1, B2, B3, B4, 0, B5, 1)
A7: Period 1 (Year 2) | B7: =AMORDEGRC(B1, B2, B3, B4, 1, B5, 1)
A8: Period 2 (Year 3) | B8: =AMORDEGRC(B1, B2, B3, B4, 2, B5, 1)
For Period 0, AMORDEGRC calculates pro-rated declining depreciation incorporating the 1.75 coefficient, outputting exactly €21,972.60 for the initial 230-day interval.
Comparison: AMORLINC vs AMORDEGRC
| Feature | AMORLINC | AMORDEGRC |
|---|---|---|
| Depreciation Pattern | Straight linear with pro-rated start | Accelerated declining balance |
| Statutory Coefficients | None (Constant rate) | Automatic (1.25, 1.75, or 2.25 multiplier) |
| Switchover Rule | Does not switch | Switches to linear when declining < straight line |
| Target Asset Class | Commercial real estate, standard fixtures | Machinery, computers, technological equipment |