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
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 |
Field Information
- Selection Range
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- Asset Book
- Options
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- Revaluation Index
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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
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Select the year for which you want to calculate revaluation.
- Reason
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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
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If this check box is selected, journal entries are not created in the General Ledger module for this transaction.
- Print Error Report
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If this check box is selected, an error report is also printed.