| 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 3nd 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 Note Reconciliation is based on the value of an asset on the capitalization date. If the in-service date is earlier than the capitalization date and you wish to base the revaluation on the first year of service, you must enter the first year of service in the Last Reval. Year field of the Asset Book (tffam1110s000) session. Example if you do not fill the last revaluation date In-Service date = 01-01-2000 Transaction amount = 1.000 Asset life = 5 year Capitalization date = 01-01-2002 Index year 2000=100 Index year 2001=110 Index year 2002=120 Revaluation calculated at 1-1-2001: Value at capitalization date 1000*120=1200. This amount is multiplied with the index of the year 2001: 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
Related topics Using Asset Revaluation
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.