The Depreciation Pools pane

The Depreciation Pools pane on the Capital tab is used to add, rename and remove pools. To set up a new pool:

1. Click on the Add Pool button and enter a name in the pop-up window. The pool will be added to the table.
2. Select its Depreciation Method from the drop-down list.
3. To edit the method settings, click on and the Depreciation Method Settings window will be displayed. The number of fields in this dialog change depending on the selected depreciation method. Some of the commonly used options are explained in the table below.
4. When you have finished making changes, click OK.

Field	Description
Treat as abandonment/salvage	Check this box to calculate this pool as abandonment, which means calculating it immediately after the economic limit date.
Depreciation	This field contains the variable which holds the depreciated value. To select a different variable, click on .
Balance	This field contains the variable which holds the balance remaining to be depreciated in the pool. To select a different variable, click on .
Opening Balance	This field allows you to enter a value as an opening balance, or to select a relevant variable from a contract or project template.
Production Basis for Depreciation	This is used for Unit-Of-Production depreciation and also when depreciation is delayed until after production start.
Total BOE Volume	This field (available for straight-line depreciation pools) can be set to a specific volume or linked to a variable as part of the straight line depreciation calculation. To link this field to a variable, click on .
Economic Limit Method	Here you can specify how depreciation should be handled at the economic limit date. The Truncate at E.L. option cuts calculations when the economic limit is reached. Depreciate Beyond E.L. applies the calculation to the remaining project life. Take Balance at E.L. adds any balance remaining to the period before the economic limit date.
Delay Until Production Start	Check this box to make depreciation start when production starts. When the box is checked, the field is set to True; otherwise it is set to False.
Half Period Rule	Here you can set the calculation to the half period rule. The half-period rule is a convention that assumes a new asset is in service for half of the year in which the expenditure occurs. The depreciation in the first year will be half of a full year’s amount with the remainder spilling into an additional final period. When the box is checked, the field is set to True; otherwise it is set to False.
Straight Line Years	If you use straight-line depreciation, here you can specify the number of years which the depreciation will span.
Declining Balance Rate	The rate at which the balance declines in a declining balance method.
Take Remainder at Econ Limit	This setting controls the treatment of undepreciated balances at the economic limit.
Time Valued Pairs Lookup	If you use the time-value pairs method, you can specify the Time Valued Pairs Lookup table. Click on the folder button in the Time Valued Pairs Lookup field, and an empty table will be displayed. Right-click anywhere on the table and select Add from the context menu. Type the number of the depreciation period in the Lookup Other Integer field and percentage in the Lookup Result Percent field.