Depreciation for monthly calendar and daily calendar
Hello everyone
I am confused in depreciation calculation in assets now.
We have changed the prorate convention from daily to monthly but we don't understand about the depreciation after changing.
Say if an asset cost £6,000 useful life 5 years then per month charge should be £6,000/5/12=£100, not working out daily rate £6,000/(5*365)=£3.29 then charge £3.29*31=£101.99 for a 31 day month and £3.29*30=£98.7 for a 30 day month. However, after changing the prorate convention to monthly, the depreciation does not seem to be different.
Do they calculate the same? Could you please advise?
Thank you