| 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 | 250 | 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. If the index value was 20% in each year, the results using the same info as #2 would apply:
Original Cost | 1000
Life | 5 year
Depreciation Method | SL
Revaluation in 2nd year | 20%
Revaluation in 3nd year | 20%
Year | Depreciation | A/D | Current Cost | Beg NBV | End NBV
--- | --- | --- | --- | --- | ---
1 | 250 | 200 | 1000 | 1000 | 800
2 | 250 | 450 | 1200 | 800+200 | 750
3 | 330 | 780 | 1440 | 750+240 | 660
4 | 330 | 1110 | 1440 | 660 | 330
5 | 330 | 1440 | 1440 | 330 | 0
Formulas (for SL method) net book value (NBV) at beginning of the year = End NBV from previous year + net change Depreciation amount = NBV / # of years remaining for depreciation Current Cost (if revaluation occurred in the year) = Previous current cost + net change NBV at end of year = current cost - A/D Net change = (Index current year - Index last year) / Index last year New Current Cost = (Net Change * Current Cost) + Current Cost Note If the data required to complete this calculation is not present, an error will be generated automatically. Related topics Using Asset Revaluation To use From and To fields
Fields | Description
Asset Book | Identifies the book associated with the asset. Book codes permit you to define the books used by assets to record transactional data. Each asset must have at least one asset-book relationship.
Book Code | Identifies the book associated with the asset. Book codes permit you to define the books used by assets to record transactional data. Each asset must have at least one asset-book relationship.
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 Index | The description or name of the code.
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.
Reason Code | The description or name of the code.
Suppress Journal Entries | If this check box is selected, journal entries are not created in the General Ledger module for this transaction.
Print Error Report | If this check box is selected, an error report is also printed.