IAS 40 Assets Revaluation Setup
(Doc ID 2592375.1)
Last updated on SEPTEMBER 25, 2019
Applies to:
Oracle Fusion Assets Cloud Service - Version 11.13.19.07.0 and laterInformation in this document applies to any platform.
Goal
If we create a revaluation for a fixed asset, currently the accounting follows the IAS 16 rules resulting in the following journal entries:
Positive Revaluation:
deb 1XXXXXX Asset Cost
cred 1XXXXXX Revaluation Reserve
Negative Revaluation:
deb 4XXXXXX Revaluation Loss
cred 1XXXXXX Asset Cost
However, our assets are classified as Investment Property and therefore the IAS 40 accounting rules should apply, resulting in the following journal entries:
Positive Revaluation:
deb 1XXXXXX Revaluation Reserve
cred 4XXXXXX Fair Value Gains and Losses
Negative Revaluation:
deb 4XXXXXX Fair Value Gains and Losses
cred 1XXXXXX Revaluation Reserve
How can we get the accounting setup to follow this IAS 40 logic for revaluations?
Solution
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In this Document
Goal |
Solution |