The revaluation of an asset can apply, either to the values at the start of the fiscal year, the values at the start of the current period, or the values at the end of the fiscal year.
This function is used to carry out a mass revaluation or a mass cancellation of a revaluation previously carried out for a group of assets. As it is prohibited to carry out several revaluations on the same period, canceling the previous revaluation is necessary before a new one can be launched.
Before being actually launched, the processing can be simulated in order to assess the result via the report. In order to avoid having to re-enter the revaluation parameters for each simulation, then actual process, these parameters can be memorized along with the selection criteria.
The revaluation principles are different depending on the legislation that applies to the company:
Table summarizing the authorized revaluation types:
Reval. type | Legislation | Plan | Standard | Reval. | Reval. | Reval. |
- by market value | - by market value | - by market value | ||||
Standard | ||||||
Other than FRA | Accounting | Standard | YES | YES | YES | |
Other than FRA | Accounting | IAS | YES | YES | YES | |
Other than FRA | IAS | IAS | YES | YES | YES | |
FRA | IAS | IAS | YES | YES | YES | |
Free accounting | ||||||
ENG | Accounting | Standard | YES | NO | NO | |
FRA | Accounting | CoA | YES | NO | NO |
A/ The revaluation can apply to the values at the start of the fiscal year or the values at the start of the current period. This revaluation can be implemented:
B/It can be a revaluation applying to the values of the end of the fiscal year. It is therefore necessary for the current period to be the last period of the fiscal year. The recording of the revaluation is performed on the current fiscal year but its impact is visible on the next fiscal year. This revaluation can be implemented:
In this case, the revaluation applies to the fiscal year start values. It can be implemented:
Irrespective of the method applied (taking the market value into account or applying a coefficient), the impact on the revaluation is as follows:
Notes:
1/ An asset meeting at least one of the following conditions is implicitly excluded from the list of selected assets:
- It is Inactive.
-Its account nature is Fixed Asset in process.
- Its holding type is In template, In concession or Canceled.
- Update 8.0.0 and higher: it is classified as for sale.
- It has been subject to an actual asset issue.
- It is in the process of an intra-group sale.
- It is a revaluation by index/coefficient and no occurrence corresponding to the asset was found in the Reval. Coefficients/Indexes table.
2/If one of the selected asset meets, at least, one of the following conditions, a warning message is displayed. If the user wants to continue with the process, the revaluation is not applied to this asset:
- The plan concerned by the re-evaluation contains deferred depreciation.
- If the asset has been subject to a change of method during the fiscal year and the revaluation occurs during another period than the first period of the fiscal year, with the coming into effect at the start of the fiscal year.
- The asset has already been subject to a revaluation in the same period. Before proceeding with a new revaluation, it is necessary to cancel the previous revaluation.
- The asset depreciation start date, for the selected plan, is later than the end date of the current period.
- The asset has already been subject to an impairment loss in the same period.
- The asset uses an impairment loss increase limit on the selected plan. The increase in value of such an asset must be processed by an impairment loss recovery.
Refer to documentation Implementation
This function is composed of:
The management is the same for this window as for all the mass processing functions that can be applied to assets.
First of all, the user needs to set up the process or to recall an existing setup using the button. The existing setup will have been previously saved under a Memo code.
The setup of the processing consists in:
- Entering the processing options. By default, the process is carried out in Simulation mode and generates a Detailed log file presenting the values of the various parameters applied during the process, the details of the old and new values for each of the updated assets and the list of assets containing errors, as well as the error reason.
- Selecting the company and the potential sites where the assets are registered.
- Selecting the plan to which the revaluation applies.
- Entering the parameters linked to the revaluation.
- Carrying out the selection of assets potentially impacted by the process (Extended selection tab).
Note: when the setup of a processing is completed, it is possible to save it under an identification code using the button. It is then possible to recall it at a later date for use in a revaluation process.
Once the setup is done, it is possible to:
A window is displayed showing a table that contains the list of selected assets, as well as the new values for the plan for which a revaluation was requested.
This table is used to:
- view the calculated new values,
- identify with different colors the potential lines with errors along with the corresponding error messages. The faulty asset values are not revalued; they are displayed with their original values.
- modify the value of the Coefficient applied, at each asset level, if the revaluation is carried out by Coefficient or by Index,
- enter the Market value, in the case of a revaluation by Market value.
The modification of a coefficient value for an asset or the entry of the market values must be confirmed by using . To cancel the modifications in progress, click the button.
Once the manual adjustments are completed, click the button to close the control window; the system displays again the entry window for parameters, which enables the user either to validate the mass update by clicking , or to abort the update by clicking the button.
Presentation
The header contains the processing options and is used to select the company, as well as the site(s) in which the assets are registered.
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Fields
The following fields are present on this tab :
Options
| This check box is selected by default and runs the closing in simulation mode. In this case, controls and the process are carried out but there are no updates recorded in the database. Clear this check box to run in actual mode. In this case, you cannot reverse the closing and updates are recorded in the database. If you are using intermediate commits, it is recommended that the NIVTRACE – Log file level parameter (AAS chapter, MIS group) value is 0. |
| This indicator can be accessed only when one or several reports are linked to the massive process. In this case, the activation of this indicator enables the user to print these reports. |
| A log file is automatically displayed on process completion, showing the processing parameters. A Statistics section gives the number of selected assets, the number of assets updated as well as the number of assets not processed due to an error. Assets with errors are listed with their error reason. The viewing and printing of log files are possible at any time via the report code ATRACE - Print log file print request, obtained from the Supervisor function in the Print/Group print menu. |
Grid Company selection
| Help common to all the mass processings. When the company setupACCPERCTL - Control of accounting periods (chapter AAS, group CPT) has the value 'Yes', the company is not displayed in the list if at least one of its contexts is not synchronized with the accounting period/fiscal breakdown.The desynchronization status of a context is visible in the screenDetailed status of contexts that can be accessed from the Actions icon.In that screen, on the Calculation tab, the field Modification type has the value 'CNX' and the field Modified parameter has the value 'DESYNC'.In this case, it is necessary to launch the processing ofContexts synchronization. |
| This field displays the company code. |
Grid Site selection
| The grid displays the list of the sites attached to the companies and for which the user has authorizations. |
| Identification Code for the company which the site is linked to. |
| Identification code of the site. |
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Note: the viewing and printing of the log files is possible at any time via the Print log file print request of the ATRACE report code, obtained from the Supervisor function in the Print/Group print menu.
These tables display both the list of managed companies for which the user is authorized and the list of sites corresponding to these companies where the user is authorized.
When the company setupACCPERCTL - Control of accounting periods (chapter AAS, group CPT) has Yes for value, the company is not displayed in the list as soon as at least of one its context is not synchronized with the accounting period/fiscal breakdown. It is then necessary to launch theContext synchronization process.
A desynchronization context can be viewed on theDetailed status of contexts,Calculation tab (the value of the Modification type field is CNX and the value of the Modified parameter field is DESYNC).
It is necessary to select the company and the sites in which the assets involved in the processing, are registered. After selecting the company, all sites of the companies are selected by default. The user can clear those that are not impacted by the processing.
Provided they belong to the same company, the site(s) involved in the processing can be directly selected, in which case the company to which they belong is automatically selected.
Reminder: the assets must be registered in sites attached to the same company. Selecting a second company, or sites linked to another company, leads to the de-selection of the first company selected, after validation of a confirmation message.
After selecting the company or site(s), it is possible to refine the selection by entering other selection criteria in the Extended selection tab.
Presentation
Use this tab to:
- Specify the Depreciation plan to which the revaluation is applied.
- Recall the start and end dates of the current Fiscal year and current Period if the fiscal year is divided into periods, within the context of the entered plan.
- Request the Cancellation of the last revaluation carried out on this plan in the same period (or in the same fiscal year if it is not divided into periods) by activation of the corresponding flag.
- Specify the revaluation effective date: FY start, period start or FY end (see below for examples of revaluation with different effective dates at the level of Process description).
If no revaluation Cancellation is required, the revaluation parameters can be entered, except for the Revaluation date, which must correspond to the current fiscal year start date (or the current period if the fiscal year is divided into periods).
These are:
- The Revaluation method: by Coefficient, Index or Market value. The details of the implementation terms, based on the selected mode, are provided below.
- The reference of a Revaluation coefficients and indexes table when the revaluation mode is based on Coefficients or Indexes.
- A Coefficient when the revaluation method is by Coefficient and when no Revaluation coeffs. and indexes table have been entered.
- An appraiser in case of a standard revaluation by Market value, in order to specify the name of the expert that carried out the asset evaluation.
- A Comment to specify the reason or justification of the revaluation.
Reminder: in case of revaluation by Market value, the entry of the market value is carried out at the level of each of the selected assets in the Control window.
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Fields
The following fields are present on this tab :
Revaluation parameters
| This field indicates the depreciation plan affected by the revaluation. This plan cannot be the subsidy plan. |
| This field contains the financial year start date of the considered context. |
| This field contains the financial year end date of the considered context. |
|   |
| This field contains the current period start date of the considered context. |
| This field contains the current period end date of the considered context. |
| This indicator is always accessible. When it is activated, it is used to request the cancellation of the re-evaluation carried out on the selected financial assets in the processed period. |
| This field specifies the date on which the revaluation is implemented: fiscal year start date, period start date, or fiscal year end date.
2/ Selected effective date: Period start
3/ Selected effective date:Fiscal year end
|
| Date on which the re-evaluation is saved. This non-modifiable date is automatically entered according to the "Effective date" selected. |
| This field specifies the revaluation method: Coefficient, Index or Market value.
Reminder : only the "Market value" mode is possible when the revaluation applies to the FY end values. |
| This field enables to enter the reference for the Index and factor table. |
| This field can only be accessed in the case of a revaluation by Coefficient, provided that any coefficient table reference is entered. |
| In case of re-evaluation by Market value, this field is used to specify the name of the expert that carried out the asset valuation. |
| This field is used to add a comment, for example the justification of an asset re-evaluation. |
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Reminder: A standard revaluation concerns all the plans, except the Chart of accounts and the free plans submitted to the CoA standard or the other standards of a French legislation company.
This revaluation applies:
1/ Either to the values of the fiscal year startor of the period start.It can be implemented:
2/ Or to the values of the fiscal year end. It can be implemented:
Application of a fixed Coefficient
- Upon completion of a fiscal year end revaluation, only the fiscal year end net value is updated; no depreciation plan value is updated in the current fiscal year. The impact of the revaluation is seen, following the launch of the calculation processing, in the depreciation plan of the next fiscal year (the amount of the revaluation is displayed in the "Revaluation reserve total").
- Upon completion of a revaluation of fiscal year start or period start, the values are updated according to the following rules:
Case 1:No depreciation exists prior to the revaluation.
| Value updating |
Revaluated balance sheet value | Revaluated balance sheet value before revaluation x Fixed coefficient |
Depreciation Total | Depreciation total before revaluation x Fixed coefficient |
NVT after revaluation | Revaluated balance sheet value – Revaluated depreciation total |
Period revaluation | NVT for transfer after revaluation – NVT for transfer before revaluation |
For example :
Period start situation
Revaluated balance sheet value: 1,000
Depreciation total: 350
-------
Accounting net value: 650
Constant coefficient: 1.20
Situation after revaluation:
New revaluated balance sheet value: 1,000 x 1.20 = 1.200
New depreciation total: 350 x 1.20 = 46,550
-------
New accounting net value 780
Period revaluation: 780 - 650 130
Case 2:Depreciations exist prior to the revaluation.
| Value updating |
Revaluated balance sheet value | Revaluated balance sheet value before revaluation x Fixed coefficient |
Depreciation Total | Actual deprec. total before revaluation x Fixed coefficient |
Period start depreciation total | Period start depreciation total x Fixed coefficient |
Period start impairment loss increase total | Period start impairment loss increase x Fixed coefficient |
Period start depreciation balance | Period start depreciation balance x Fixed coefficient |
NVT after revaluation | NVT before revaluation x Fixed coefficient |
Period revaluation | NVT for transfer after revaluation – NVT for transfer before revaluation |
Example (with the assumption that the impairment loss increase limit = 0):
Period start situation
Revaluated balance sheet value: 1,000
Actual depreciation total: 350
Depreciation total: (50)
Impairment loss increase total: (30)
Depreciation balance (50 -30): 20
-------
Actual accounting net value: 630
Constant coefficient: 1.20
Situation after revaluation:
Revaluated balance sheet value: 1,000 x 1.20 = 1.200
Depreciation total: 350 x 1.20 = 420
Revaluated depreciation total: 50 x 1.20 = (60)
Revaluated increase total: 30 x 1.20 = (36)
Revaluated depreciation balance (60 - 36) 20 x 1.20 = 24
-------
New accounting net value 630 x 1.20 = 756
Period revaluation: 756- 630 = 126
At the end of the revaluation, the values are updated according to the same rules as the ones applied for constant coefficients. These rules are described above.
The coefficient to be applied is found in the Revaluation coeffs. and indexes table, whose reference is specified in the parameters. The correct access key corresponds to the year and month (if entered) in the Date field chosen as the Date Criterion, and to the value in the field chosen as the Nature Criterion.
If no coefficient in this table has been loaded in relation to this access key, the link is automatically excluded from the processing.
On completion of the revaluation, the values for each asset are updated by application of a coefficient determined from the indexes found in the Revaluation coeffs. and indexes table, which reference is specified at the level of the parameters.
This coefficient is determined as follows: Current index / Initial index
- The correct access key for the initial index corresponds to the year and any month (if entered) in the Date field chosen as the Date Criterion and to the value in the field chosen as the Nature criterion.
- The correct access key for the current index corresponds to the year and possibly to the month of the current period (or the current fiscal year if the fiscal year is not divided into periods) and to the value in the field chosen as the Nature Criterion.
If at least one of the two indices is not specified, the asset is automatically excluded form the processing.
After the coefficient determination, the calculation of the values after revaluation complies with the same rules as those defined for the application of a fixed coefficient. These rules are described above.
The Market value displayed at the level of each asset is the value entered in the Market value option window in the Fixed assets management function. It can be modified.
- Upon completion of a fiscal year end revaluation, no depreciation plan value is updated in the current fiscal year. The impact of the revaluation is seen, following the launch of the calculation processing, in the depreciation plan of the next fiscal year (the amount of the revaluation is displayed in the "Revaluation reserve total").
- Upon completion of a revaluation of fiscal year start or period start, the values are updated according to the following rules:
| Value updating |
Revalued balance sheet value | Market value |
Period start deprec. total | 0 |
Period start depreciation total | 0 |
Period start impairment loss increase total | 0 |
Period start depreciation balance | 0 |
NVT after revaluation | Market value |
Period revaluation | NVT for transfer after revaluation – NVT for transfer before revaluation |
Example 1 (period start revaluation): No depreciation exists prior to the revaluation.
Period start situation
Revaluated balance sheet value: 1,000
Depreciation total: 350
-------
Accounting net value: 650
Market value: 700
Situation after revaluation:
New revaluated balance sheet value: 700
New depreciation total: 0
-------
New actual accounting NV: 700
Period revaluation: 700 - 650 = 50
Example 2 (period start revaluation): There are depreciations prior to the revaluation (with the assumption that the impairment loss increase limit = 0):
Period start situation
Revaluated balance sheet value: 1,000
Actual depreciation total: 350
Depreciation total: (50)
Impairment loss increase total: (30)
Depreciation balance (50 -30): 20
-------
Actual accounting net value: 630
Market value: 700
Situation after revaluation:
New revaluated balance sheet value: 700
New depreciation total: 0
Depreciation total: 0
Impairment loss increase total: 0
-------
New actual accounting NV: 700
Period revaluation: 700- 630 = 70
Example 3 (fiscal year end revaluation).
Period start situation
Revaluated balance sheet value: 1,000
Depreciation total: 350
-------
Net value: 650
---> Market value: 700
Situation in the current fiscal year, after revaluation:
Revaluated balance sheet value: 1,000
Depreciation total: 350
-------
Net value: 650
Situation in the next fiscal year:
New revaluated balance sheet value: 700
New depreciation total: 0
-------
New actual NV: 700
Reminder: a standard revaluation only concerns the Chart of accounts and the free plans submitted to the CoA standard or the other standards of a French legislation company.
This revaluation applies only to the values of the fiscal year start. It can be implemented:
Irrespective of the method applied (taking the market value into account or applying a coefficient), the impact on the revaluation is the following:
Example of revaluation with application of a coefficient: 1.30
Fiscal year start situation before revaluation:
Chart of accounts
Revaluated balance sheet value: 1,000
Depreciation total: 200
------
Accounting net value: 800
Fiscal plan
Revaluated balance sheet value: 1,000
Depreciation total: 450
------
Accounting net value: 550
Book vs. Tax provision: 450 - 200 = 250
Situation after revaluation:
Chart of accounts
Actual accounting net value: 800 x 1.30 = 1 040
Revaluation variance: 800 - 1,040 = 240
Revaluated balance sheet value: 1,000 - 240 = 1,240
Depreciation total (unchanged): 200
Depreciation expense (calculated from the revaluated balance sheet value): 260
Fiscal plan
Revaluated fiscal net value = revaluated net value: 1,040
Revaluated fiscal balance sheet value = Revaluated balance sheet value: 1,240
Depreciation total before revaluation (unchanged): 450
Depreciation expense (calculated from the revaluated balance sheet value): 468
Book vs. Tax provision: 468 - 260 = 208
Book vs. Tax provision reversal (linked to the revaluation): 250
Presentation
This tab is used to enter the asset selection criteria.
It contains five lines, each of them used to enter a criterion, with each criterion being linked to the next one by one of the following logical operators: And, Or.
The process for selection criteria entry is as follows:
1/ Enter, or select from the list obtained by a right click in the field in the asset table FXDASSETS which contains the information to which the selection is applied.
2/ Then select the operator: Any, Equal, Different, Greater than or equal, Less than, Lessthan or equal, Like.
The Like operator is valid only for numeric fields. It allows the use wild cards.
3/ Enter a value. The list of possible values for the chosen field can be obtained with a right click when these values are contained in a local menu or in a table (miscellaneous table, common table, accounting table, etc.).
The user can also:
- enter the criteria in the form of an expression; the formulas of this type can be entered by right-clicking the fields in the asset table FXDASSETS,
- enter a selection formula by calling the formula editor.
Reminder: The selection options are the same as those used in the standard Advanced selection function. For more information, see the documentation on the application object ergonomics.
Fields
The following fields are present on this tab :
Block number 1
| Use the look-up icon to select a field from the Fixed assets table. |
| Select this checkbox to save this search option. |
Block number 2
| Use this field to enter an expression for the selection criteria. This criterion is added to the previous criteria by the link AND. The expression cannot contain fields from a table other than the Fixed assets table. These can be indexed. |
| Select this checkbox to save this search option. |
For each selected asset where no error has been detected, the revaluation process carries out the following operations:
In case of a revaluation by Market value:
Example 1: Revaluation by Market value with implementation date at current fiscal year start
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Depreciation total on FY-1 end: 3005.46
- Current fiscal year: [01/01/2006 - 31/12/2006]
- Current period: [4/1/2006 - 6/30/2006]
- Revaluation at market value to 8,000
Fiscal year | Period | Fiscal year start total | Fiscal year charge | Period charge | Period end 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 - | (1) | (2) 2,286.61 | (3) 640.76 | 1,133.91 |
| 01/07/06 - |
| 2,286.61 | 576.35 | 1,710.26 |
| 01/10/06 - |
| 2,286.61 | 576.35 | 2,286.61 |
01/01/2007 - 31/12/2007 | 01/01/07 - | 2,286.61 | 2,286.61 | 563.82 | 563.82 |
| 01/04/07 - | 2,286.61 | 2,286.61 | 570.09 | 1,133.91 |
| 01/07/07 - | 2,286.61 | 2,286.61 | 576.35 | 1,710.26 |
| 01/10/07 - | 2,286.61 | 2,286.61 | 576.35 | 2,286.61 |
01/01/08 - |
| 4,573.22 | 2,292.87 |
|
|
01/01/09 - |
| 6,866.09 | 1,133.91 |
|
|
01/01/10 - |
| 8,000.00 |
|
|
|
(1) The revaluation recorded in the current period [01/04/06 - 30/06/06] takes effect on 01/01/2006. This has the following consequences:
- the recovery of the depreciations already posted: 3,005.46 for previous FYs
- the update of an asset gross value at 01/01/2006: 8,000 instead of 10,000
- the beginning of a new depreciation plan, with 8 000 as depreciation value, and the residual value i.e. 1,187 days of the [01/04/06 - 06/30/2009] period, as depreciation duration.
(2) the new charge of 2006 fiscal year equals to: 8,000 x (365 days / 1,277 days) = 2,286.61
(3) The depreciation expense for the current period is: 2,286.61 x (181 days / 365 days) - 493.15 = 640.76
181 days corresponds to the [01/01/06 - 30/06/2006] period, since the effective date of the revaluation is 01/01/06. The charge of the current fiscal year includes the adjustment of the previous periods depreciation totals (- 493.15).
Example 2: Revaluation by Market value with the implementation date at current period start
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Depreciation total on FY-1 end: 3005.46
- Current fiscal year: [01/01/2006 - 31/12/2006]
- Current period: [4/1/2006 - 6/30/2006]
- Revaluation at market value to 8,000
Fiscal year | Period | Fiscal year start total | Fiscal year charge | Period charge | Period end 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 - | (1) | (2) 1,853.41 | (3) 613.31 | 613.31 |
| 01/07/06 - |
| 1,853.41 | 620.05 | 1,233.36 |
| 01/10/06 - |
| 1,853.41 | 620.05 | 1,853.41 |
01/01/2007 - 31/12/2007 | 01/01/07 - | 1,853.41 | 2,459.98 | 606.57 | 606.57 |
| 01/04/07 - | 1,853.41 | 2,459.98 | 613.31 | 1,219.88 |
| 01/07/07 - | 1,853.41 | 2,459.98 | 620.05 | 1,839.93 |
| 01/10/07 - | 1,853.41 | 2,459.98 | 620.05 | 2,459.98 |
01/01/08 - |
| 4,313.39 | 2,466.73 |
|
|
01/01/09 - |
| 6,780.12 | 1,219.88 |
|
|
01/01/10 - |
| 8,000.00 |
|
|
|
(1) The revaluation recorded in the current period [01/04/06 - 30/06/06] takes effect at 01/04/2006. This has the following consequences:
- the recovery of the depreciations already posted: 3,005.46 for previous FYs and 493.15 for the FY
- the update of an asset gross value at 01/04/06: 8,000 instead of 10,000
- the beginning of a new depreciation plan, with 8,000 as depreciation value, and the residual value i.e. 1,187 days of the [01/04/06 - 30/06/2009] period, as depreciation duration.
(2) the new charge of 2006 fiscal year equals to: 8,000 x (275 days / 1,187 days) = 1,853.41
(3) The depreciation expense for the current period is: 1853.41 x (91 days / 275 days) = 613.31
91 days corresponds to the [01/04/2006 - 30/06/2006] period, since the effective date of the revaluation is 01/04/2006.
Example 3: : Revaluation by Coefficientwith an effective date at the start of the current fiscal year.
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Depreciation total on FY-1 end: 3005.46
- Current fiscal year: [01/01/2006 - 31/12/2006]
- Current period: [4/1/2006 - 6/30/2006]
- Revaluation by a coefficient of 1.20
Fiscal year | Period | Fiscal year start total | Fiscal year charge | Period depreciation charge | Period end 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 - | (1) 3,606.55 | (2) 2,400.00 | (3) 696.99 | 1,190.14 |
| 01/07/06 - | 3,606.55 | 2,400.00 | 604.93 | 1,795.07 |
| 01/10/06 - | 3,606.55 | 2,400.00 | 604.93 | 2400.00 |
01/01/2007 - 31/12/2007 | 01/01/07 - | 6,006.55 | 2,400.00 | 591.78 | 591.78 |
| 01/04/07 - | 6,006.55 | 2,400.00 | 598.36 | 1,190.14 |
| 01/07/07 - | 6,006.55 | 2,400.00 | 604.93 | 1,795.07 |
| 01/10/07 - | 6,006.55 | 2,400.00 | 604.93 | 2,400.00 |
01/01/08 - |
| 8,406.55 | 2,400.00 |
|
|
01/01/09 - |
| 10,806.55 | 1,193.45 |
|
|
01/01/10 - |
| 12,000.00 |
|
|
|
(1) The revaluation recorded in the current period [01/04/06 - 30/06/06] takes effect on 01/01/2006. This has the following consequences:
- the revaluation of the depreciation total at the end of E-1: 3,005.46 x 1.2 = 3,606.55
- the revaluation of the asset gross value on 01/01/2006: 10,000 x 1.2 = 12,000
- the continuing depreciation plan taking into account these revaluated values, while keeping, however, the depreciation method and adjusting in the current period the depreciation total for the closed periods of FY E.
(2) the new charge of 2006 fiscal year equals to: 12,000 x 20% = 2,400.00
(3) The depreciation expense for the current period is: 2,400.00 x (181 days / 365 days) - 493.15 = 696.99
181 days corresponds to the [01/01/06 - 30/06/2006] period, since the effective date of the revaluation is 01/01/06.
Example 4: : Revaluation by Coefficientwith an effective date at start of the current period
- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Depreciation total on FY-1 end: 3005.46
- Current fiscal year: [01/01/2006 - 31/12/2006]
- Current period: [4/1/2006 - 6/30/2006]
- Revaluation by a coefficient of 1.20
Fiscal year | Period | Fiscal year start total | Fiscal year charge | Period depreciation charge | Period end 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 - | (1) 3,606.55 | (2) 2,400.00 | 598.36 | (3) 1,190.14 |
| 01/07/06 - | 3,606.55 | 2,400.00 | 604.93 | 1,795.07 |
| 01/10/06 - | 3,606.55 | 2,400.00 | 604.93 | 2,400.00 |
01/01/2007 - 31/12/2007 | 01/01/07 - | 6,006.55 | 2,400.00 | 591.78 | 591.78 |
| 01/04/07 - | 6,006.55 | 2,400.00 | 598.36 | 1,190.14 |
| 01/07/07 - | 6,006.55 | 2,400.00 | 604.93 | 1,795.07 |
| 01/10/07 - | 6,006.55 | 2,400.00 | 604.93 | 2,400.00 |
01/01/08 - |
| 8,406.55 | 2,400.00 |
|
|
01/01/09 - |
| 10,806.55 | 1,193.45 |
|
|
01/01/10 - |
| 12,000.00 |
|
|
|
(1) The revaluation recorded in the current period [01/04/06 - 30/06/06] takes effect at 01/04/2006. This has the following consequences:
- the revaluation of the depreciation total at the end of E-1: 3,005.46 x 1.2 = 3,606.55
- the revaluation of the depreciation total for the closed periods of E: 493.15 x 1.2 = 591.78
- the revaluation of the asset gross value at 01/04/2006: 10,000 x 1.2 = 12 000
- the continuing depreciation plan taking into account these revaluated values.
(2) the new charge of 2006 fiscal year equals to: 12,000 x 20% = 2,400.00
(3) The depreciation expense for the current period is: 2,400.00 x (181 days / 365 days) - 591.78 = 598.36
At 30/06/2006, the depreciation total for the closed periods is thus: 591.78 (quarter charge 1 revaluated) + 598.36 (quarter charge 2) = 1,190.14.
A revaluation is negative when the market value entered is smaller than the net value of the asset, or when a revaluation is performed by applying a coefficient, if this coefficient is smaller than 1.
Period | Own capit. | Own capit. | Balance |
| Profit and loss | Profit and loss | Balance |
|
|
| 0 |
|
|
| 0 |
100 | 100 (1) |
| 100 |
|
|
| 0 |
50 | 50 |
| 150 |
|
|
| 0 |
-70 |
| 70 | 80 |
|
|
| 0 |
-100 |
| 80 (2) | 0 |
|
| 20 (2) | -20 |
-10 |
|
| 0 |
|
| 10 | -30 |
20 |
|
| 0 |
| 20 (3) |
| -10 |
50 | 40 |
| 40 |
| 10 |
| 0 |
30 | 30 |
| 70 |
|
|
|
|
(1) The positive revaluation amount is credited as own capital, under the heading Revaluation variances (Provision).
(2) The nevative revaluation amount is credited as own capital, under the heading Revaluation variances (Reversal). The displayed amount is limited to the balance of the revaluation variances. The balance, posted as Charges to the profit and loss account, is stored in the RVADEVCHG field of the EFASREEVAL table.
(3) The positive revaluation amount is posted to the profit and loss account (Revenue) because it compensates for any negative revaluation, previously posted to the profit and loss account.
This example does not take into account the revaluation reversal transferred to the profit and loss account, and not allocated as the asset is being depreciated. The amount of this reversal corresponds to the difference between the depreciation based on the revalued book value of the asset and the depreciation based on its initial cost.
- Asset value: 1,000
- Depreciation start date: 01/01/N
- Mode: linear on the Charts of accounts; declining on the Fiscal plan
- Duration: 5 years
- In N: accounting charge of 200 - fiscal charge of 450 - exceptional provision: 250
- In N+1, its net value of 800 is revaluated at 1,040.
- The revaluation variance has a value of 240 (1,040 - 800)
- The accounts depreciation basis of 1,000 is increased by the value of the revaluation variance (240), resulting in a revaluated basis of 1,240.
- The accounts depreciation is calculated from the new net value of 1,040, in residual mode, resulting in an accounts depreciation of 260/year.
Accounts depreciation
Fiscal year | Reval. | Total | Net value | Reval. | Fiscal | NV | Reserve |
N | 1,000 | 0 | 1,000 |
| 200 | 800 |
|
N + 1 | 1,240 | 200 | (800) 1,040 | 240 | 260 | 780 | 240 |
N + 2 | 1,240 | 460 |
|
| 260 | 520 | 240 |
N + 3 | 1,240 | 720 |
|
| 260 | 260 | 240 |
N + 4 | 1,240 | 980 |
|
| 260 | 0 | 240 |
Finance depreciation
Fiscal year | Reval. | Total | Exceptional reversal | Net value | Fiscal | Net value (end) |
N | 1,000 | 0 |
| 1,000 | 450 | 550 |
N + 1 | 1,240 (1) | 450 | 250 (2) | 1,040 (3) | 468 | 572 |
N + 2 | 1,240 | 668 (4) |
| 572 | 257.40 | 314.60 |
N + 3 | 1,240 | 925.40 |
| 314.60 | 157.30 | 157.30 |
N + 4 | 1,240 | 1,082.70 |
| 157.30 | 157.30 | 0 |
(1) Fiscal basis = accounting basis
(2) Book vs. Tax reversal noticed in N
(3) Fiscal net value = net value
(4) The total N+2 takes into account the Book vs. Tax provision reversal N+1 (450 + 468 - 250 = 668)
Book vs Tax depreciation
Fiscal year | Fiscal year | Provision | Reversal | Fiscal year |
N | 0 | 250 |
| 250 |
N + 1 | 250 | 208 | 250 (1) | 208 |
N + 2 | 208 |
| 2.6 | 205.40 |
N + 3 | 205.40 |
| 102.70 | 102.70 |
N + 4 | 102.70 |
| 102.70 | 0 |
(1) Book vs. Tax provision reversal linked to the revaluation
The cancellation process for the revaluation is only applied to the selected assets that have been subject to a revaluation during the processed period. This results in:
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