Asset Book Revaluation (tffam3200m000)

Use this session to provide an update of the current value of the asset to reflect business changes in the book value. You can revalue an asset based on an index amount for the specified year. The index value can be entered in the Indices (tffam3101m000) session.

Note

For books of type other than Calculatory, revaluation will not be performed if the revaluation year is later than the current year.

Example

Revaluation occurred in the second year only.

Original Cost1000
Life5 year
Depreciation MethodSL
Revaluation in 2nd year20%

 

YearDepreciationA/DCurrent CostBeg NBVEnd NBV
120020010001000800
22504501200800+200750
32507001200750500
42509501200500250
5250120012002500

 

Example 2

Revaluation occurred in the second and third year. You need to look at the index value in the second and third year.

Original Cost1000
Life5 year
Depreciation MethodSL
Revaluation in 2nd year20%
Revaluation in 3rd year20%

 

YearDepreciationA/DCurrent CostBeg NBVEnd NBV
120020010001000800
22504501200800+200750
33177671400750+200633
431710841400633316
5316140014003160

 

Depreciation amount = NBV beginning of year / # of years remaining for depreciation.

Net Book Value (NBV) at end of year = current costs - accumulated depreciation

Net change = index current year / index previous year

New current costs = net change * current costs

Note

Reconciliation is based on the value of an asset on the capitalization date. If the in-service date is earlier than the capitalization date and you wish to base the revaluation on the first year of service, you must enter the first year of service in the Last Revaluation Year field of the Asset Books (tffam1510m000) session.

Example if you do not fill the last revaluation date

In-Service date = 01-01-2010

Transaction amount = 1000

Asset life = 5 year

Capitalization date = 01-01-2012

Index year 2010=100

Index year 2011=110

Index year 2012=120

Revaluation calculated at 1-1-2011: Value at capitalization date 1000*120=1200

This amount is multiplied with the index of the year 2011: 1200*110=1320

YearDepreciationAcc. depr.Current CostsBeg. NBVEnd NBV
120020010001000800
22804801320800+320=1120840
33201440840+120=960640
43201440640320
532014403200

 

 

Selection Range
Asset Book

Identifies the book associated with the asset. Book codes permit you to define the books used by assets to record transactional data. Each asset must have at least one asset-book relationship.

Options
Revaluation Index

According to the selected revaluation index the adjustment transaction of the selected asset books is performed.

Revaluation indices are maintained in the Indices (tffam3101m000) session.

Revaluation Year

Select the year for which you want to calculate revaluation.

Reason

Enter a reason code of the Adjustment reason type for the new adjustment transactions.

Reason codes are maintained in the Reasons (tffam6550m000) session.

Suppress Journal Entries

If this check box is selected, journal entries are not created in the General Ledger module for this transaction.

Print Error Report

If this check box is selected, an error report is also printed.