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.

Example

Revaluation occurred in the second year only.

Original Cost 1000
Life 5 year
Depreciation Method SL
Revaluation in 2nd year 20%
Year Depreciation A/D Current Cost Beg NBV End NBV
1 200 200 1000 1000 800
2 250 450 1200 800+200 750
3 250 700 1200 750 500
4 250 950 1200 500 250
5 250 1200 1200 250 0

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 Cost 1000
Life 5 year
Depreciation Method SL
Revaluation in 2nd year 20%
Revaluation in 3rd year 20%
Year Depreciation A/D Current Cost Beg NBV End NBV
1 200 200 1000 1000 800
2 250 450 1200 800+200 750
3 317 767 1400 750+200 633
4 317 1084 1400 633 316
5 316 1400 1400 316 0

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

Year Depreciation Acc. depr. Current Costs Beg. NBV End NBV
1 200 200 1000 1000 800
2 280 480 1320 800+320=1120 840
3 320   1440 840+120=960 640
4 320   1440 640 320
5 320   1440 320 0
Note: For books of type other than Calculatory, revaluation will not be performed if the revaluation year is later than the current year.

Field Information

Selection Range
Asset Book

book code

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.

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