Field help (MDRFLG)

This flag, reserved to the Polish legislation, is submitted to the KPL activity code.
It can be accessed when updating a fixed asset, which at least one of the plans is tracked with an "improvable" mode having for origin the depreciation basis of the CoA balance sheet value.

• Activating it is used to improve the asset according to the improvement mechanism: only the CoA balance sheet value is impacted by the ex tax amount of selected expenses. The IAS balance sheet value is not updated. 
   
• If this flag is not activated, the improvement of the asset follows the standard mechanism.
   
   It is possible to assign expenses to the asset, according to both mechanisms (standard and improvement) but not during the same capitalization operation: once the first expense selected, it is no longer possible to modify whether to choose the improvement mechanism.

Asset update by improvement

After selecting the expenses, click the [Apply] button.
The improvement window is displayed and lists a table loaded with all the plans on which it is possible to carry out the improvement. By default, they are all selected but it is possible to de-select those for which the improvement is not requested.

• The improvement date must be entered.
• When the mode "ML - Polish linear" is used, the improvement makes it possible to determine the effective date of improvement, which can never be entered.
• When the mode "MD - Polish declining" is used, the effective implementation date of the improvement is enterable and will begin either on the 1st day of the current period, on the 1st day of the next period or on the 1st day of the first period of the next fiscal year.
  The possibility of choosing one or the other of these dates depends on a number of conditions. The latter can vary according to the given plan of depreciation (accounting or tax plan), on the value of the parameter MDRCURPER - Current period improvement (chapter AAS, group CLC), and on the fiscal year during which the improvement occurs.

 The rules related to the choice of the implementation date are detailed in the Detailed methods of depreciation linked to the Polish legislation.

Only one improvement operation is authorized on the current period. In case one expense assignment has been forgotten, it is necessary to start the assignment operation again, after having unlinked those already assigned.

• After record, the ex-tax General Chart of Accounts entry value of the asset is updated as well as the balance value on each of the concerned plans.
• The effective date as well as the improvement value applied to the asset are displayed at the level of the periodical depreciation plan.
• When the effective date of improvement is implemented:
  - on the current period, the improvement has an immediate impact on the calculation of depreciation expenses,
  - on the next period or on the 1st period of the following FY, the improvement has an impact on the calculation of period depreciation expenses, only after the current period closing,
  - on a closed period of the current fiscal year, the improvement is implemented on the current period, taking the anteriority into account (adjustment calculation).