## Appendix: Understanding Initial Term Apportionment Codes

This appendix discusses initial term apportionment codes.

### Initial Term Apportionment Codes

This table contains all values for Initial Term Apportionment Codes and describes how each code is used:

Code | Usage
Blank First Day of the Month | If you leave the Initial Term Apportionment Code field blank, the system uses the default of the first day of the period that the asset is placed in service as the modified start date
A Actual Depreciation Start Date | The system uses the actual start date as the modified start date. The actual start date is retrieved from the FLDSD field in the Asset Account Balances File table (F1202).
F First Half/Second Half Convention | To determine the modified start date, consider: If the asset was placed in service in the first half of the year, then the modified start date is the first day of the year. If the asset was placed in service in the second half of the year, then the modified start date is the first day of the succeeding year.
G German First/Second Half of Year | This code is designed for German depreciation requirements, but can also be used to meet the requirements of other countries. To determine the modified start date, consider: If the asset is placed in service in the first half of the year, then the modified start date is the first day of the year. If the asset was placed in service in the second half of the year, then the modified start date is the first day of the second half of the year.
H Half-Year (3/4 or 1/4) | The system determines the modified start date as indicated in these examples. If the asset is placed in service in the first half of the year (between January 1, xxxx and June 30, xxxx), then the modified start date is April 1, xxxx. If the asset is placed in service in the second half of the year (between July 1, xxxx and December 31, xxxx), then the modified start date is October 1, xxxx. Note. In these examples, a regular calendar date pattern is used.
M Mid-Month Convention | The system assigns the 16thday of the month in which the asset is placed in service as the modified start date. Note. If the asset is placed in service in February, then the system assigns February 15 as the modified start date.
N First Day of Next Period | The system uses the first day of the next period in which the asset is placed in service as the modified start date.
P Middle of Period | The system determines the number of days between the end of the current period in which the asset is placed in service and the end of the prior period. It then divides that number by two and adds the result to the prior period end date to calculate the modified start date. Use this code for a more accurate mid-month calculation when you use 4-4-5 or similar accounting date patterns.
Q Mid-Quarter Convention | The system uses the midpoint of the quarter in which the asset was placed in service as the modified start date. For example, assuming a regular calendar date pattern, the system would calculate the modified start date as follows: For assets placed in service between January 1 and March 31, the system assigns February 15 as the modified start date. For assets placed in service between April 1 and June 30, the system assigns May 17 as the modified start date. For assets placed in service between July 1 and September 29, the system assigns August 17 as the modified start date. For assets placed in service between September 30 and December 31, the system assigns November 16 as the modified start date.
R First Day of Next Year | The system uses the first day of the year following the year in which the asset was placed in service as the modified start date.
S First Actual/Second Period Start | Use this code when you have a primary life year rule and a secondary life year rule attached to the depreciation rule. The primary rule uses the asset's actual start date as the modified start date and the secondary rule uses the first day of the period in which the asset is placed in service as the modified start date.
W Whole Year Convention | The system uses the first day of the year in which the asset is placed in service as the modified start date.
Y Mid-Year Convention | The system uses the date at the midpoint of the year in which the asset is placed in service as the modified start date.