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Deprication Measurement on Computer Lab Inventory using Straight-

Line Method
To cite this article: Diki Arisandi et al 2019 J. Phys.: Conf. Ser. 1175 012087

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1st International Conference on Advance and Scientific Innovation (ICASI) IOP Publishing
IOP Conf. Series: Journal of Physics: Conf. Series 1175 (2019) 012087 doi:10.1088/1742-6596/1175/1/012087

Deprication Measurement on Computer Lab Inventory using

Straight-Line Method

Diki Arisandi1*, Luluk Elvitaria1, Seri Hartati2, Liza Trisnawati1, Darsono

Nababan3
1
Department of Informatics Engineering, Universitas Abdurrab, Pekanbaru 28292,
Riau, Indonesia
2
Department of Government, Universitas Abdurrab, Pekanbaru 28292, Riau, Indonesia
3
Department of Information System, Universitas Pelita Harapan Medan, Medan
20112, North Sumatera, Indonesia

Abstract. Institution or college, especially those with computer-related departement, the

avability of a computer lab is very important to support teaching and learning activities,
research, or training for the users. The equipment that recorded in the inventory of
computer lab have a lifespan, and each year there will be depreciation or impairment of assets.
Using straight-line method and the depreciation and amortization guideline from the regulation
from the minister of the treasury of the Republic Indonesia in 2013 on the depreciation module
of goods, it can be calculated the amount of depreciation of computer lab inventory such as
computer and networking equipment. It is expected that with the use of straight-line method,
there will be a depreciation analysis and issued a depreciation policy related to equipment
inventory in computer lab.

1. Introduction
Educational institution, especially those with majors or disciplines of computer science, existence of a
computer lab becomes very important. Computer laboratories that consist of computer and
networking devices can be a learning tool of practicum, research tools for researchers, instrument for
community service, and also to conduct training using computer technology1. Along with the
development of computer and network technology today, the needs related to computer and network
specifications for computer labs can be adjusted to the funds owned by an educational institution2.
A computer and network equipment, regardless of price, surely have an economic lifespan. This
economic lifespan is related to the life of the goods, in which case any goods will be depreciated3.
Depreciation means a certain amount of value that must be allocated to an asset/goods during its
economic lifespan. Thus, the accumulated value of depreciation on a good can be used to replace the
item when its economic life has reached its time4.
The economical lifespan of an inventory item belonging to the technology category have faster
economic lifespan than others. This is in accordance with Regulation of the Minister of Treasury
No.96/PMK.03/2009, which stating that computer equipment belongs to cluster 1, which means the
equipment belonging to this cluster has a maximum lifespan of four years5.
There are several methods used in calculating the economic lifespan of goods, such as straight-line
method, declining balance method and others. In this article the method used is straight-line method,

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1st International Conference on Advance and Scientific Innovation (ICASI) IOP Publishing
IOP Conf. Series: Journal of Physics: Conf. Series 1175 (2019) 012087 doi:10.1088/1742-6596/1175/1/012087

where in this method the depreciation cost is assumed to be the same amount for each year until the
inventory is reaching maximum lifespan6.
This work will discuss the calculation of depreciation, time of lifespan, the estimated cost of
maintenance and longevity of computer equipment commonly used in educational institutions.
Hopefully, the management through the facilities and infrastructure departement has the planning and
calculation of procurement budgeting and allocation of equipment maintenance funds for the
computer during its lifespan.In addition, this method can be a reminder for the management to have a
plan in the procurement or rejuvenation of inventory so that the equipment in computer labs can be
used to the maximum utilization.

2. Straight-Line Method
Depreciation is the accounting process in allocating the cost of tangible assets to the expenses in a
systematic and rational way during the period expected to benefit from the use of assets7. Fixed assets
is one of the important tools and principal in a company engaged in manufacturing or activities to
make the production process8.
Fixed assets owned by the company, used by the company itself and these are not intended to be
traded. tangible fixed assets owned by the company may have various forms, such as land, buildings,
machinery and equipment, work tools, molds, furniture and office equipment, vehicles and place of
goods that can be returned9. Financial accounting standards state that the depreciable amount is
allocated to each accounting period over the life of the asset by various systematic methods.
Whichever methods is chosen, consistency in its use is necessary, regardless of company profitability
level and taxation considerations, in order to provide an appeal of the results of its operations from one
period to another10.
One of the depreciation method used in this work is straight-line depreciation (Straigth Line
Method). straight-line method is more look at the time aspect than the usability aspect. This method is
most widely applied by companies because it is most easily applied in accounting. In this straight-line
depreciation method, the depreciation expense for each year is of equal value and is not affected by the
outcome or output produced11. The calculation of depreciation rates for the straight-line method is as
follows:

To estimate the lifespan can be seen in the following table12

Table 1. Estimated period of Asset

Tangible property Lifespan period depreciation rates referred to
verse (1) verse (2)
I. non-buildings
Cluster 1 4 years 25% 50 %
Cluster 2 8 years 12,5% 25 %
Cluster 3 16 years 6,25% 12%
Cluster 4 20 years 5% 10%
II. buildings
permanent 20 years 5%
impermanent 10 years 10%

Based on the law of income tax as seen in table 1 that the clustering of tangible property is divided
into two, ie non-buildings and buildings. The quantity for each group is divided into 2, verse (1) which

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1st International Conference on Advance and Scientific Innovation (ICASI) IOP Publishing
IOP Conf. Series: Journal of Physics: Conf. Series 1175 (2019) 012087 doi:10.1088/1742-6596/1175/1/012087

is used for the straight line method calculation, while verse (2) is used for calculating in declining
balance method.
For the classification of each cluster and also some examples of the property can be seen in table
2 5:

Table 2. Classification of Assets by Cluster

No. Cluster Example
1 Cluster 1 1.Wooden or rattan furniture and appliances
including tables, benches, chairs, cabinets
and the like that are not part of the building.
2.Office machines such as typewriters,
counters, duplicators, photocopiers,
accounting / bookkeeping machines,
computers, printers, scanners and etc.
3.Other equipment such as amplifier, tape /
cassette, video recorder, television and etc.
4.Motorcycles, bicycles and tricycles.
5.Tools of special purpose for the industry /
service concerned.
6.Communication tools such as telephone,
fax, cell phone and etc.
2 Cluster 2 1.Metalfurnitureand appliances including
tables, benches, chairs, cabinets and the like
that are not part of the building.
2.Air conditioning equipment such as air
conditioners, fans and etc.
3.Cars, buses, trucks, speed boats and etc.
4.Container dan etc
3 Cluster 3 Machines used in the field of mining purpose
4 Cluster 4 1.Steam locomotives and tenders over rails.
2.Electric locomotives over rails, run by
batteries or by electric power from outside
sources.
3.Trains, passenger cars and freight, including
special containers are made and equipped to
be pulled with one device or some vehicle
of transport.
4.Passenger ships, freight vessels, ships
specially made for the transport of certain
goods (eg wheat, rocks, minerals and the
like) including refrigerators and tankers,
fishing vessels and etc, which weigh over
1,000 DWT.

3. Result and Discussion

In this discussion, three examples of items that are always included in inventory of computers lab
include: built-up desktop computer, air conditioning and projector. For a built-up desktop computer,
with the purchasing price of Rp. 5.000.000 and purchased at the beginning of the year in the first
month. If you see references in table 2, the built-up desktop computer in the category of cluster 1 with
a lifespan for 4 years (table 1), estimated residual value of Rp 1,000,000, if the lifespan is in

3
1st International Conference on Advance and Scientific Innovation (ICASI) IOP Publishing
IOP Conf. Series: Journal of Physics: Conf. Series 1175 (2019) 012087 doi:10.1088/1742-6596/1175/1/012087

accordance with the estimation that has been applied then the depreciation calculation can be seen in
the following table:

Table 3. Sample calculation for built-up desktop

Purchased
price and after Depreciation Residual value
Year %
minus residual cost per year
value
1 Rp 25% Rp 1.000.000 Rp.
5.000.000 3.000.000
2 – 25% Rp 1.000.000 Rp.
1.000.000 2.000.000
3 = 25% Rp 1.000.000 Rp.
4.000.000 1.000.000
4 25% Rp 1.000.000 Rp. 0

From table 3, it can be explained that educational institutions should set aside Rp 1,000,000 for
computer maintenance and purchase of new computers when the useful life of goods is reaching the
maximum lifespan in the fourth year.
The second example is air conditioning, assumed for the purchasing price of one air conditioning
unit was Rp 4,000,000. because air conditioning categorized to the cluster 2, so the lifespan of this
goods is 8 years. If the educational institution will replace the air conditioning unit within 10 years and
the residual value of air conditioner is Rp 0, the result can be seen in the following table:

Table 4. Sample calculation for air condition

Year Purchased % Depreciation cost Residual value
price

1 Rp 12,5% Rp 500.000 Rp 3.500.000

4.000.000
2 12,5% Rp 500.000 Rp 3.000.000
3 12,5% Rp 500.000 Rp 2.500.000
4 12,5% Rp 500.000 Rp 2.000.000
5 12,5% Rp 500.000 Rp 1.500.000
6 12,5% Rp 500.000 Rp 1.000.000
7 12,5% Rp 500.000 Rp 500.000
8 12,5% Rp 500.000 Rp 0
9 12,5% Rp 500.000 - Rp 500.000
10 12,5% Rp 500.000 - Rp 1.000.000

In table 4 it can be seen that the lifespan of the goods has exceeded the predetermined estimate.
This can cause losses from the utilization of goods due to the quality of goods has decreased, so it can
be sure will appear cost or agenda of repair and maintenance on air conditioning that should not need
to be done.
The third example is the projector with the assumption that the price per unit was Rp 5.000.000,
this electronic device is used by the teacher or the presenter to display the information on the wall
screen in a larger form so that the entire computer lab can see the material clearly13. As an assumption,
the residual value in this item was Rp 0. In this third example, if it refers to the clustering table then
this item belongs to cluster 1 and its lifespan is four years. However, it was assumed that this item is
purchased by mid-year:

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1st International Conference on Advance and Scientific Innovation (ICASI) IOP Publishing
IOP Conf. Series: Journal of Physics: Conf. Series 1175 (2019) 012087 doi:10.1088/1742-6596/1175/1/012087

Table 5. sample calculation for projector

Year Purchased % Depreciation cost Residual value
price

1 Rp 12,5% Rp 625.000 Rp 4.325.000

5.000.000
2 25% Rp 1.250.000 Rp 3.125.000
3 25% Rp 1.250.000 Rp 1.875.000
4 25% Rp 1.250.000 Rp 625.000
5 12,5% Rp 625.000 Rp 0

In the Table 5 it can be seen that the goods were purchased in the middle of the year, so the
percentage of depreciation was adjusted to be halved. However, for the second year to fourth
depreciation cost is calculated in accordance with the stipulated provisions. The age of the goods can
reach the fifth year, but by the middle of the fifth year the goods are exhausted and must be replaced
immediately with the new unit.

4. Conclusion
This method can estimate the depreciation expense that the management has to set aside for inventory
of goods in an existing computer lab. The amount of depreciation cost is calculated from the year of
purchase and the amount was the same. So that the depreciated expense can be allocated for repair,
maintenance and purchase of new units if the goods have reached the maximum lifespan.

Acknowledgement
This work was supported by 1st batch on Abdurrab Foundation grant in 2017

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