Depreciation Methods and the Depreciation Schedule

Applies to: DRO (IAS 37) module | Audience: Customers | Last reviewed: 08/04/2026

• The three depreciation types
• Depreciation settings
• Settings lock once a plan exists
• Reading the depreciation schedule

The three depreciation types

The decommissioning asset on a DRO plan draws down according to depreciation settings chosen up front. Three depreciation types are available in the module.

Depreciation settings

Each type is shaped by a few parameters, and they live together in the administration settings. Go to Administration > Settings, set Link Type to Planning (DRO), and view the Definitions. The four settings below appear in that list.

Depreciation Type (DRO)

The three-way choice between straight line, units of production, and declining balance.

Depreciation Starting Period (DRO)

This setting decides how the very first month is handled. There are three conventions:

• A full month of depreciation in the recognition month
• A half month in the recognition month
• A full month starting in the second month

Because the type and the starting period are chosen independently, three types and three conventions give nine possible combinations.

Depreciation Units of Production Unit Label (DRO)

This setting applies to units of production. The unit label names the unit, for example tons for a mining customer or barrels for an oil and gas customer. The label is descriptive only and does not drive any calculation.

What drives the units of production calculation is a depreciation rate, which ENFOS derives each month from the resource production and the remaining reserve entered on the plan.

Depreciation Declining Balance Factor (DRO)

This setting applies to declining balance. The factor is a numeric value that controls how aggressive the early depreciation is, and it defaults to 2.

Settings lock once a plan exists

The depreciation parameters are fixed once planning begins. Therefore, they must be set during the initial configuration before the first plan is created. As soon as a plan exists on the account in any status, the following four settings lock and can no longer be changed: Depreciation type

• Depreciation starting period
• Unit label
• Declining balance factor

Editing a locked setting, for example switching from straight line to declining balance, and then saving produces an “Errors Detected” message indicating that plan data already exists, and the change is not saved. Because these settings cannot be revised once a plan exists, they should be finalized during initial configuration.

Reading the depreciation schedule

On the plan, go to Plan > DRO > Balance and open the Depreciation Details tab. The Depreciation Schedule lays out the depreciation month by month, with these columns:

• Plan Month
• Calculate Date
• Type
• Initial Balance for the month
• Depreciation taken
• Adjustment, if any was applied
• Final Balance
• Accumulated Depreciation to date

How a revision appears in the schedule

In the month of a revision, the adjustment is recorded in the Adjustment column and increases the balance, but that month continues to depreciate at the prior amount. The higher depreciation, respread over the remaining life, begins the following month.

This timing is intentional. A revision made partway through a month takes effect for depreciation at the start of the next month, not mid-month. Monthly depreciation therefore increases in the month after the revision, and the accumulated depreciation continues to rise toward the asset’s end of life.

Filters and export

• The filters at the top of the Depreciation Schedule change the time view or the year.
• Export takes the whole schedule outside the platform.

• Configuring DRO planning type and subtype
• Creating an initial DRO plan
• Change in discount versus change in estimate
• Core DRO concepts and terminology