Method Change
This window is used to modify the depreciation parameters for the displayed asset.
It is called from the Actions menu in the Assets management function.
Changing the method is prohibited:
- Inactive assets,
- assets with the In template holding type,
- update 8.0.0 and higher: for assets classified as for sale,
- for assets which have been the object of an actual asset issue,
- for assets in the process of an intra-group transfer.
Prerequisites
Refer to documentation Implementation
Screen management
This window is composed of:
- a header containing the asset identification information,
- the Parameters tab that is used to enter the parameters related to the new depreciation methods.
Management method of the window
The management mode is the same for this window as for all the actions that can be applied to assets.
It is therefore advisable:
1/ First, to enter the parameters linked to the action being implemented.
2/ Then, it is possible:
- Either to directly validate the entry of the new parameters by clicking on [OK]. A consistency check is then carried out on the new method; if an error occurs, a message is displayed and prevents the updating of the asset; it is then necessary to correct the parameters with errors.
- Or to go through an intermediate stage of control of the parameters entered by clicking [Control]. A window is displayed, which allows both the visualization of the result of applying the new parameters on the asset and on its depreciation plans when these parameters are coherent and also to repair, in the color display, any lines with errors as well as displaying the corresponding error messages. An asset with an error is not updated with the new parameters; it is displayed with the parameters of the original method.
Click on the button [End] button to close the control window; the parameter entry window is displayed again, making it possible either to confirm by clicking [OK] if no error has been detected, or to correct any parameter in error.
Note: This stage is part of the management method which is the same for different processing tasks, whether they concern a mass or an individual processing. Its only real usefulness is in mass processings, where it authorizes, if necessary, manual adjustment of the values for certain processed assets. In unit processings, this window can be accessed only in view mode, the entered parameters affecting only one single asset; their adjustment is done directly in the entry window of these parameters.
3/ If the parameters are correct, the [OK] is used to validate their application and to return to the Assets screen in modification mode. The processing is taken into account only after saving the asset.
Header
Presentation
The header displays the financial asset reference as well as its description once the method change action is called. This information cannot be modified.
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Fields
The following fields are present on this tab :
Business object
| Reference for the financial asset. |
| Description of the financial asset. |
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Tab Setup definition
Presentation
This tab is made up of a table containing as many lines as there are depreciation plansmanaged by the company.
This table is used:
- To carry out any required adjustment on one or more elements in the depreciation method after having set the Update flag, which precedes it, to the value Yes . The different management rules belonging to each parameter, are specified at the level of the field descriptions.
- To specify the effective date of the method change. It can either be:
- the Period start date
- the FY start date
- the Depreciation start date.
The selection of this date depends on the start date of the asset depreciation. The various possibilities as well as the associated processing terms are described below. - To specify the management terms of the potential variance on depreciation, when the change of method takes effect at the asset depreciation start date, and when this date is earlier than the start date of the current fiscal year.
Note: when the effective date is later than the depreciation start date, the asset presents an accumulated depreciation; this is why the method change applies to the net value of the asset and causes a change of depreciation method; the equivalent residual method being preferred.
After entry of the parameters, it is necessary either to validate using the buttonbutton, or to perform a check of the information entered via. See the management mode of the window described above.
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Fields
The following fields are present on this tab :
Grid New deprec methods
| The code for the depreciation plan. |
| Help common to the unitary and mass processing of the method change.
Specificities: if the depreciation mode is LB (Belgianlinear) and the specific rule is changing from Depreciation charge x2 to Depreciation charge x2 abandoned, then the mode change is necessarily effective on the Financial start date. For more details and examples on the process terms related to the effective date selection for a mode change, see thefunction documentation. |
| Help common to the unitary and mass processing of the method change. |
| Help common to the unitary and mass processing of the method change. This indicator can be viewed only in mass-processing mode. It must be activated if a modification of the residual value is required. The entry of this value is carried out in the Control window. |
| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| Help common to the unitary and mass processing of the method change. This field can only be entered if the Upd indicator is set to Yes. It is used to enter the depreciation start date for the asset, or in the case of a mass process for the group of assets. The modification of the amortisation start date is authorised only if the asset has not been closed or if the amortisation start date before the modification is superior or equal to the current period start date. |
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| Enter the depreciation mode for the asset or, in the case of a mass process, for all the selected assets. This mode should be authorized for the related company, plan and country. The choice of the mode is submitted to the following restrictions:
The modification of the amortization mode can lead to the modification of the Depreciation start date of the plan and its loading, according to the setup carried out at the level of the Depreciation method, either with the First use date, or with the Purchase date, or with the Posting date. |
| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| This field is only available if the Update check box is selected to force the end depreciation date for the asset, or in the case of a mass process, for all assets. |
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| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| Help common to the unitary and mass processing of the method change. This field can only be entered if the Upd indicator is set to Yes. It is used to enter the depreciation duration to be applied to the asset or in the case of a mass process, to all of the selected assets. The rules for the entry and the value of the depreciation duration are a function of the depreciation method entered:
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| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| This field is only available if the Update check box is selected to enter the depreciation rate for the asset or in the case of a mass process, for all the selected assets. The rules for the entry of the depreciation rate are a function of the depreciation method entered:
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| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| The pro rata type can be entered only if the depreciation method on the schedule is one of the three following types: UL (Straightline), UD (Declining balance) or RE (Residual). |
| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| Help common to the unitary and mass processing of the method change. This field is linked with the management of the IT (Ordinario/Anticipato) mode. It is displayed only if the mode is allowed for company's country and can be entered only if the Maj flag is set to Yes. It is used to enter the depreciation rate used by the IT depreciation method (Ordinario/Anticipato) in order to calculate the Anticipato depreciation.
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| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| Help common to the unitary and mass processing of the method change. This field is only visible during a unitary process and can only be entered if the Upd indicator is set to Yes. |
| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| Help common to the unitary and mass processing of the method change. |
| This field is used to enter a fiscal help. The amount should be less than the net value at the period start.
Note on the 40% deduction [15/04/15-14/04/17] Specific rule for a French company: To apply this rule, the purchase date must be on or before 14/04/17. If not, you receive the message "If the specific rule no longer applies at the purchase date, make sure you have the rights to apply it. Do you confirm?" You can select Yes or No to dismiss the message.
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| When set to Yes, this forcing indicator enables to force the value of the field to which it is associated. |
| The depreciation accelerator coefficient is used to manage depreciation modes: Declining balance, Belgian declining, Russian straight-line, Russian declining, Russian constant and Softy Russian modes. It can only be modified for these depreciation modes. |
| This field reminds the user of the accounting standard retained for the management of the depreciation plan. |
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Potential effective dates and processing terms
The table below lists the different potential choices for the effective date of the method change and the adjustment or processing terms applied, according to the asset depreciation start date.
1/ The depreciation start date is less than the start date of the current FY fiscal year.
Effective date | Processing Terms |
Depreciation start date | The depreciation total on FY-1 end is recalculated. |
Current F Fiscal year start date | The depreciation total on FY-1 end is not recalculated. |
Start date of current period P | The depreciation total on FY-1 end is not recalculated. |
2/ The depreciation start date is greater than or equal to the start date of the current FY and less than the start date of the current period P.
Effective date | Processing Terms |
Depreciation start date | The charge of the F fiscal year will be recalculated using the new method. |
Start date of current period P | The depreciation total of the closed periods of the current fiscal year is not recalculated. |
3/ The depreciation start date is greater than or equal to the start date of the current period P.
Effective date | Processing Terms |
Depreciation start date | The charge of period P (or the depreciation start period) will be recalculated based on the new depreciation method. |
A list of examples is provided below, illustrating the implementations and processing terms available.
Effective date and consecutive method changes:
During an ongoing fiscal year, multiple depreciation method changes can be carried out. The implementation of a method change cannot be prior to the previous change.
Example
Let us consider a fiscal year containing 4 periods: P1, P2, P3 and P4.
- During P2, a change of method is made to be effective at Period start.
During P3, only a change of method to be effective at Period start will be possible. - During P1, a change of method is made to be effective at Fiscal year start.
During P3, a change of method to be effective at Fiscal year start or a change of method to be effective at Period start will be possible.
Examples of method change
Depreciation start date less than Current fiscal year FY
- Example 1
Effectiveness: Depreciation start date
Chosen terms: Variance on total at the end of F-1 in Carry forward balance
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Depreciation total on FY-1 end: 3,005.46
- Duration change (extended to 6 years)
Fiscal year | Period | Fiscal year start total | Fiscal year charge | Period charge | Period end total | Carry-forward |
01/01/04 - | (1,005.46) | |||||
01/01/05 - | (2,000.00) | |||||
01/01/06 - | 01/01/06 - 31/03/06 | 3,005.46 | 2,000.00 | 493.15 | 493.15 | |
01/04/06 - | (3,005.46) | 1,667.00 | (2) 333.50 | 826.65 | (-500.41) | |
01/07/06 - | 2,505.05 | 1,667.00 | 420.17 | 1,246.82 | ||
01/10/06 - | 2,505.06 | 1,667.00 | 420.18 | 1,667.00 | ||
01/01/07 - | 01/01/07 - | (3) 4,172.05 | 1,667.00 | 411.04 | 411.04 | |
01/04/07 - | 4,172.05 | 1,667.00 | 415.61 | 826.65 | ||
01/07/07 - | 4,172.05 | 1,667.00 | 420.17 | 1,246.82 | ||
01/10/07 - | 4,172.05 | 1,667.00 | 420.18 | 1,667.00 | ||
01/01/08 - | 5,839.05 | 1,667.00 | ||||
01/01/09 - | 7,506.05 | 1,667.00 | ||||
01/01/10 - | 9,173.05 | 826.95 | ||||
01/01/11 - | 10,000.00 |
(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Carry-forward at the start of F financial year.
The new total at the end of F-1 (2,505.05) cancels and replaces the previous one (3,005.46), even though the forcing flag is set to Yes for this total.
(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50
(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
New total at the end of 2005 re-caculated after the change of method + Charge of 2006
Let us consider: 2,505.05 / 1,667.00 = 4,172.05
Depreciation start date less than Current fiscal year FY
- Example 2
Effectiveness: Depreciation start date
Chosen terms: Variance on total at the end of F-1 in Exceptional charge of the fiscal year
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Depreciation total on FY-1 end: 3,005.46
- Duration change (extended to 6 years)
Fiscal year | Period | Fiscal year start total | Fiscal year charge | Period charge | Period end total | Fiscal |
01/01/04 - | (1,005.46) | |||||
01/01/05 - | (2,000.00) | |||||
01/01/06 - | 01/01/06 - 31/03/06 | 3,005.46 | 2,000.00 | 493.15 | 493.15 | |
01/04/06 - | 3,005.46 | 1,667.00 | (2) 333.50 | 826.65 | (-500.41) | |
01/07/06 - | 3,505.46 | 1,667.00 | 420.17 | 1,246.82 | (-500.41) | |
01/10/06 - | 3,505.46 | 1,667.00 | 420.18 | 1,667.00 | (-500.41) | |
01/01/07 - | 01/01/07 - | (3) 4,172.05 | 1,667.00 | 411.04 | 411.04 | |
01/04/07 - | 4,172.0 | 1,667.00 | 415.61 | 826.65 | ||
01/07/07 - | 4,172.05 | 1,667.00 | 420.17 | 1,246.82 | ||
01/10/07 - | 4,172.0 | 1,667.00 | 420.18 | 1,667.00 | ||
01/01/08 - | 5,839.0 | 1,667.00 | ||||
01/01/09 - | 7,506.05 | 1,667.00 | ||||
01/01/10 - | 9,173.05 | 826.95 | ||||
01/01/11 - | 10,000.00 |
(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Exceptional charge for the F fiscal year, this exceptional charge must be distributed on the current period and the following ones.
For the period [01/04/06 - 30/06/06]: -500.41 x (181 / 365) = -248.15
For the period [01/07/06 - 30/09/06]: -500.41 x (273 / 365) - (-248.5) = -126.13
For the period [01/10/06 - 30/12/06]: -500.41 - -374.28 = -126.13
(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50
(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
Total at the end of 2005 + Exceptional charge of 2006
Let us consider: 3,005.46 + 1,667.00 - 500.41 = 4,172.05
Depreciation start date less than Current fiscal year FY
- Example 3
Effectiveness: Depreciation start date
Chosen terms: Variance on total at the end of F-1 in Exceptional charge of the period
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Depreciation total on FY-1 end: 3,005.46
- Duration change (extended to 6 years)
Fiscal year | Period | Fiscal year start total | Fiscal year charge | Period charge | Period end total | Fiscal |
01/01/04 - | (1,005.46) | |||||
01/01/05 - | (2,000.00) | |||||
01/01/06 - | 01/01/06 - 31/03/06 | 3,005.46 | 2,000.00 | 493.15 | 493.15 | |
01/04/06 - | 3,005.46 | 1,667.00 | (2) 333.50 | 826.65 | (-500.41) | |
01/07/06 - | 3,505.46 | 1,667.00 | 420.17 | 1,246.82 | ||
01/10/06 - | 3,505.46 | 1,667.00 | 420.18 | 1,667.00 | ||
01/01/07 - | 01/01/07 - | (3) 4,172.05 | 1,667.00 | 411.04 | 411.04 | |
01/04/07 - | 4,172.05 | 1,667.00 | 415.61 | 826.65 | ||
01/07/07 - | 4,172.05 | 1,667.00 | 420.17 | 1,246.82 | ||
01/10/07 - | 4,172.05 | 1,667.00 | 420.18 | 1,667.00 | ||
01/01/08 - | 5,839.05 | 1,667.00 | ||||
01/01/09 - | 7,506.05 | 1,667.00 | ||||
01/01/10 - | 9,173.05 | 826.95 | ||||
01/01/11 - | 10,000.00 |
(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be posted as Exceptional charge for the P period, when the change of method was carried out.
(2) The charge of the fiscal year is recalculated using the new duration, the charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
(10,000.00 x 16,67 %) = 1,667.00 x (181 days / 365 days) = 826.65 - 493.15 = 333.50
(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
Total at the end of 2005 + Exceptional charge of 2006
Let us consider: 3,005.46 + 1,667.00 - 500.41 = 4,172.05
Depreciation start date less than Current fiscal year FY
- Example 4
Effectiveness: Depreciation start date
Chosen terms: Variance on total at the end of F-1 integrated to the charge of the fiscal year
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Depreciation total on FY-1 end: 3,005.46
- Duration change (extended to 6 years)
Fiscal year | Period | Total | Fiscal | Fiscal | Total |
01/01/04 - | (1,005.46) | ||||
01/01/05 - | (2,000.00) | ||||
01/01/06 - | 01/01/06 - | 3,005.46 | 2,000.00 | 493.15 | 493.15 |
01/04/06 - | 3,005.46 | (1) 1,166.59 | (2) 85.35 | 578.50 | |
01/07/06 - | 3,005.46 | 1,166.59 | 294.05 | 872.55 | |
01/10/06 - | 3,005.46 | 1,666.59 | 294.04 | 1,166.59 | |
01/01/07 - | 01/01/07 - | (3) 4,172.05 | 1,667.00 | 411.04 | 411.04 |
01/04/07 - | 4,172.05 | 1,667.00 | 415.61 | 826.65 | |
01/07/07 - | 4,172.05 | 1,667.00 | 420.17 | 1,246.82 | |
01/10/07 - | 4,172.05 | 1,667.00 | 420.18 | 1,667.00 | |
01/01/08 - | 5,839.05 | 1,667.00 | |||
01/01/09 - | 7,506.05 | 1,667.00 | |||
01/01/10 - | 9,173.05 | 826.95 | |||
01/01/11 - | 10,000.00 |
(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be integrated to the charge of the fiscal year. Let us consider 1,667.00 - 500.41 = 1,169.59
(2) The charge of the fiscal year is recalculated using the new duration, which contains the variance on the total at the end of F-1. The charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
1,166.59 X (181 days / 365 days) = 578.50 - 493.15 = 85.35
(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
total at the end of 2005 + Charge of 2006
Let us consider: 3,005.46 / 1,166.59 = 4,172.05
Depreciation start date less than Current fiscal year FY
- Example 5
Effectiveness: Depreciation start date
Chosen terms: Variance on total at the end of F-1 integrated to the charge of the period
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Depreciation total on FY-1 end: 3,005.46
- Duration change (extended to 6 years)
Fiscal year | Period | Total | Fiscal | Fiscal | Total |
01/01/04 - | (1,005.46) | ||||
01/01/05 - | (2,000.00) | ||||
01/01/06 - | 01/01/06 - | 3,005.46 | 2,000.00 | 493.15 | 493.15 |
01/04/06 - | 3,005.46 | 1,166.59 | (1) -166.91 | 326.24 | |
01/07/06 - | 3,005.46 | 1,166.59 | (2) 420.17 | 746.41 | |
01/10/06 - | 3,005.46 | 1,666.59 | 420.18 | 1,166.59 | |
01/01/07 - | 01/01/07 - | (3) 4,172.05 | 1,667.00 | 411.04 | 411.04 |
01/04/07 - | 4,172.05 | 1,667.00 | 415.61 | 826.65 | |
01/07/07 - | 4,172.05 | 1,667.00 | 420.17 | 1,246.82 | |
01/10/07 - | 4,172.05 | 1,667.00 | 420.18 | 1,667.00 | |
01/01/08 - | 5,839.05 | 1,667.00 | |||
01/01/09 - | 7,506.05 | 1,667.00 | |||
01/01/10 - | 9,173.05 | 826.95 | |||
01/01/11 - | 10,000.00 |
(1) The variance between the new total on FY-1 and the previous one: 2,505.05 - 3,005.46 = -500.41 must be integrated to the charge of the fiscal year (1,667.00 - 500.41 = 1,169.59) and posted in the charge of the P period.
Let us consider [1,667.00 x (181 / 365) - 493.15] + (-500.41) = -166.91
(2) The charge of each following period does not contain any variance on the total at the end of F-1. The calculation is as follows:
1,667.00 x (273 / 365) - 326.24 + (500.41 ) = 420.17 --> total at the end of 3rd period = 746.41
1,667.00 c (365 / 365) - 746.41 + (500.41 ) = 420.18 --> total at the end of 4th period = 1,166.59
(3) At the closing of 2006 fiscal year, the total at the end of the year is calculated as follows:
total at the end of 2005 + Charge of 2006
Let us consider: 3,005.46 / 1,166.59 = 4,172.05
Depreciation start date less than Current fiscal year FY
- Example 6
Effectiveness: F Fiscal year start date
Imposed terms: Recalculation of the FY fiscal year using the new method based on a residual mode. The charge of the P period contains the regulation of the charges of the closed periods.
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Depreciation total on FY-1 end: 3,005.46
- Duration change (extended to 6 years)
Fiscal year | Period | Total | Fiscal | Fiscal | Total |
01/01/04 - | 1,005.46 | ||||
01/01/05 - | 2,000.00 | ||||
01/01/06 - | 01/01/06 - | 3,005.46 | 2,000.00 | 493.15 | 493.15 |
01/04/06 - | 3,005.46 | (1) 1,554.82 | 277.87 | 771.02 | |
01/07/06 - | 3,005.46 | 1,554.82 | 391.90 | 1,162.92 | |
01/10/06 - | 3,005.46 | 1,554.82 | 391.30 | 1,554.82 | |
01/01/07 - | 01/01/07 - | 4,560.28 | 1,554.81 | 383.38 | 383.38 |
01/04/07 - | 4,560.28 | 1,554.81 | 387.64 | 771.02 | |
01/07/07 - | 4,560.28 | 1,554.81 | 391.89 | 1,162.91 | |
01/10/07 - | 4,560.28 | 1,554.81 | 391.90 | 1,554.81 | |
01/01/08 - | 6,115.09 | 1,559.08 | |||
01/01/09 - | 7,674.17 | 1,554.81 | |||
01/01/10 - | 9,228.98 | 771.02 | |||
01/01/11 - | 10,000.00 |
(1) The new charge of 2006 fiscal year equals to: Net value start of 2006 x (number of days in 2006 / number of days between 01/01/2006 and the depreciation end date: 30/06/2010).
Let us consider: (10,000 - 3005.46) x (365 / 1,642 days) = 1,554.82
The duration change is performed in the current period [01/04/2006 - 30/06/2006]; the charge of this period is equal to: Charge of fiscal year x (number of days until 30/06/2006 / number of days in 2006) - Depreciation total of P-1.
Let us consider: [1,554.82 x (181 / 365)] - 493.15 = 277.87
Depreciation start date less than Current fiscal year FY
- Example 7
Effectiveness: P Period start date.
Imposed terms: Recalculation of the "residual" fiscal year charge using the new method based on a residual mode. This charge of the "residual" fiscal year is distributed on the P period and the following of the F fiscal year.
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Depreciation total on FY-1 end: 3,005.46
- Duration change (extended to 6 years)
Fiscal year | Period | Total | Fiscal | Fiscal | Total |
01/01/04 - | 1,005.46 | ||||
01/01/05 - | 2,000.00 | ||||
01/01/06 - | 01/01/06 - | 3,005.46 | 2,000.00 | 493.15 | 493.15 |
01/04/06 - | 3,005.46 | (2) 1,645.14 | (1) 381.20 | 874.35 | |
01/07/06 - | 3,005.46 | 1,645.14 | 385.40 | 1,259.75 | |
01/10/06 - | 3,005.46 | 1,645.14 | 385.39 | 1,645.14 | |
01/01/07 - | 01/01/07 - | 4,650.60 | 1,529.00 | 377.01 | 377.01 |
01/04/07 - | 4,650.60 | 1,529.00 | 381.21 | 758.22 | |
01/07/07 - | 4,650.60 | 1,529.00 | 385.39 | 1,143.61 | |
01/10/07 - | 4,650.60 | 1,529.00 | 385.39 | 1,529.00 | |
01/01/08 - | 6,179.60 | 1,533.19 | |||
01/01/09 - | 7,712.79 | 1,529.00 | |||
01/01/10 - | 9,241.79 | 758.21 | |||
01/01/11 - | 10,000.00 |
(1) The charge of the method change period is calculated as follows:
(10,000 - 3,005.46 - 493.15 ) x (275 days / 1,552 days) x (91 days / 275 days) = 381.20
1,552 days = depreciation residual duration, corresponding to the period [01/04/2006 - 30/06/2010]
275 days = residual duration in the fiscal year, equal to the period [01/04/2006 - 31/12/2006]
91 days = period duration [01/04/2006 - 30/06/2006]
(2) The new charge of 2006 fiscal year equals to:
493.15 + [(10,000 - 3,005.46) x (275 days / 1,552 days)] = 1,645.14
Depreciation start date greater than or equal to the current FY fiscal year start and less than the current period P start
- Example 8
Effectiveness: Depreciation start date
Imposed terms: Recalculation od the charge of F fiscal year using the new method
The charge of the P period contains the regulation of the charges of the closed periods.
- Depreciation start date: 01/02/06 (i.e. 334 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Duration change (extended to 4 years)
Fiscal year | Period | Total | Fiscal | Fiscal | Total |
01/01/06 - | 01/01/06 - | 1,830.14 | 323.29 | 323.29 | |
01/04/06 - | 2,287.67 | (1) 704.11 | 1,027.40 | ||
01/07/06 - | 2,287.67 | 630.13 | 1,657.53 | ||
01/10/06 - | 2,287.67 | 630.14 | 2,287.67 | ||
01/01/07 - | 01/01/07 - | 2,287.67 | 2,500.00 | 616.44 | 616.44 |
01/04/07 - | 2,287.67 | 2,500.00 | 623.29 | 1,239.73 | |
01/07/07 - | 2,287.67 | 2,500.00 | 630.13 | 1,869.86 | |
01/10/07 - | 2,287.67 | 2,500.00 | 630.14 | 2,500.00 | |
01/01/08 - | 4,787.67 | 2,500.00 | |||
01/01/09 - | 7,287.67 | 2,500.00 | |||
01/01/10 - | 9,787.67 | 212.33 | |||
01/01/11 - | 10,000.00 |
(1) The charge of the fiscal year is recalculated using the new duration. The charge of the P period contains the depreciation total variance of the closed periods of the F fiscal year:
2,287.67 X (150 days / 334 days) = 1,027.40 - 323.29 = 704.11
Depreciation start date greater than or equal to the current FY fiscal year start and less than the current period P start
- Example 9
Effectiveness: P Period start date.
Imposed terms: Recalculation of the "residual" fiscal year charge using the new method based on a residual mode. This charge of the "residual" fiscal year is distributed on the P period and the following of the F fiscal year.
- Depreciation start date: 01/02/06 (i.e. 334 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Current fiscal year: 01/01/2006 - 31/12/2006
- Current period: 01/04/2006 - 30/06/2006
- Duration change (extended to 4 years)
Fiscal year | Period | Total | Fiscal | Fiscal | Total |
01/01/06 - | 01/01/06 - | 1,830.14 | 323.29 | 323.29 | |
01/04/06 - | (2) 2,221.36 | (1) 628.09 | 951.38 | ||
01/07/06 - | 2,221.36 | 634.99 | 1,586.37 | ||
01/10/06 - | 2,221.36 | 634.99 | 2,221.36 | ||
01/01/07 - | 01/01/07 - | 2,221.36 | 2,519.26 | 621.19 | 621.19 |
01/04/07 - | 2,221.36 | 2,519.26 | 628.09 | 1,249.28 | |
01/07/07 - | 2,221.36 | 2,519.26 | 634.99 | 1,884.27 | |
01/10/07 - | 2,221.36 | 2,519.26 | 634.99 | 2,519.26 | |
01/01/08 - | 4,740.62 | 2,526.16 | |||
01/01/09 - | 7,266.78 | 2,519.26 | |||
01/01/10 - | 9,786.04 | 213.96 | |||
01/01/11 - | 10,000.00 |
(1) The charge of the method change period is calculated as follows:
(10,000 - 323.29 ) x (275 days / 1,402 days) x (91 days / 275 days) = 628.09
1,402 days = depreciation residual duration, corresponding to the period [01/04/2006 - 31/10/2006]
275 days = residual duration in the fiscal year corresponding to the period [01/04/2006 - 31/12/2006]
91 days = period duration [01/04/2006 - 30/06/2006]
(2) The new charge of 2006 fiscal year equals to:
323.29 + [ (10,000 - 323.29 ) x (275 days / 1,402 days)] = 2,221.36
Processing description
An method change carries out the following operations:
- Application of the new parameters entered.
- Updating of the asset and its depreciation plans according to the processing terms described above and linked to the choice of effective date for the change.
- Generation of a Method change event (FASMTC).
- The operation effective date is recorded in the EVTDAT field; it receives the effective date of the method change.
- The accounting effective date is saved in the CPTDATINT field; it is assigned the highest date among the following dates: Start date of the current period, Depreciation start date.
The user can view the events in the Events journal window that can be accessed from the Other info tab of the Fixed assets management function.
- Archiving, in a dedicated table (DEPRECARC) of the depreciation plan before method change, if the company is submitted to the French legislation (FRA). It can be viewed in the Archived plan tab, accessible from the inquiry of the event detail.