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Asset Revaluation - UK IFRS Area only

former_member605388
Participant
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Hi All,

I was trying to do revaluation posting only to area 20 IFRS and don’t want any posting to 01 area. I am able to post acquisition values but system is not re calculating depreciation for area 20 even after running transaction for depreciation posting and re calculate depreciation. I tried many transaction groups but they are not working. When I allow posting for 01 area it works well. Anyone can advise am I missing some step.

Thanks,

Vishal

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Hello Vishal

You have the option in ABAW to post revaluation or impairment for both the APC Value and Accumulated Depreciation. You will need to calculate the difference between the already posted accumulated depreciation value with old APC from the capitalization date and change in APC Value as the base amount from capitalization date. However the new value takes effect from the New Value date when you post through ABAW.

This will not effect previous years depreciation and the adjustment to accumulated depreciation takes effect from the value date till the end of the asset. You will see 2 Field Values in Asset Explorer Revaluation APC and Revaluation Accumulated Depreciation when you select the selections in the depreciation area for you which you want to do the posting.

USD 100000 Useful life 10 years Cap date 01.01.2013

Impairment as per fair market value to reduce by 50% in APC and adjust accumulated depreciation from current year.

USD 50000 is new APC starting from 01.01.2015 then the adjustment to accumulated depreciation is to happen based on new APC from 01.01.2013.

Hope this helps

Phani

former_member605388
Participant
0 Kudos

Thanks Phani

But in that case user has to re calculated values whereas change in depreciation key will do this automatically. Let me give you some background about my issue.

We are going live this year but client is not having values for IFRS effecting in UK since Jan 2015. I suggested to replicate 01 value to IFRS area and later we can do revaluation to adjust the values for IFRS. Please advise if you have any solution or you agree.

Thanks,

Vishal

Former Member
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Hello Vishal

How many assets require this change?

Regards

Phani

Former Member
0 Kudos

Hello Vishal

Recalculation of depreciation with the new key may not adjust accumulated depreciation in closed fiscal years which is already more than the accumulated depreciation based on the new APC(depends on depreciation key) to arrive at the correct values. Need to test this. Try it in unit testing....

Regards

Phani

former_member605388
Participant
0 Kudos

Hi Phani,

There are 1000's of assets for revaluation. I have sent document to user for his comments. I think new key is taking net value of asset and remaining useful life to calculate depreciation. Will hear back from user and update. As of now from my side it looks fine, but not sure about actual expectation from IFRS point.

Thanks,

Vishal

former_member198650
Active Contributor
0 Kudos

Hi Vishal,

Create a new transaction type with reference to original and limit the ttype for specific depreciation area in the configuration. Then select the ttype while you do revaluation.

Regards,

Mukthar

former_member605388
Participant
0 Kudos

Hi Mukthar,

It is already done I can post reveal to selected area. The issue is to re calculated the depreciation for IFRS.

Thanks,

Vishal

Former Member
0 Kudos

Hi,

Can you please tell the steps you have done for revaluation. Like for revaluation, Revaluation Measure is to be created, AR29N T-Code is to be executed in which you have to give the new value of the Asset for that depreciation area. Also check in configuration that for depreciation area of IFRS the Revaluation is allowed or not.

Regards,

Malhar.

former_member605388
Participant
0 Kudos

Hi Malhar,

I think I got the issue. Revaluation configuration was correct and I was able to post values to acquisition values. Issue was to re calculate deprisiatrion. I think I have to creat new deprisiaiton key for remaining useful life and net book value. Testing that now.

Thanks,

Vishal

former_member198650
Active Contributor
0 Kudos

Hi Vishal,

The base method should as 03 in the multi level method of the depreciation key. Then only it considers replacement value while calculating depreciation.

Regards,
Mukthar