Straight-Line, Half-Year Convention

As the name implies, straight-line half-year depreciation uses a half-year convention. The half-year convention gives a half year's depreciation in the year of acquisition, regardless of the actual acquisition date, and a half year's depreciation in the year of disposal.

If you dispose of an asset in its final year, the amount of depreciation depends on when it is disposed. If the asset is disposed of before the midpoint of the year, it receives one half of the depreciation it would have received if it had not been disposed. The asset will not be fully depreciated. If the asset is disposed of on or after the midpoint of the year, it receives the full amount of depreciation for its final year.