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Net Historic Cost Is Not Maintained In Fusion Assets (Doc ID 2696078.1)

Last updated on JULY 30, 2020

Applies to:

Oracle Fusion Assets Cloud Service - Version and later
Information in this document applies to any platform.


On : version, Set Up Asset Lifecycle Management-Define Fixed Assets

CIPFA requires authorities to keep records of revalued asset’s historic cost.
The net historical cost (NHC) of a revalued asset maintains a mathematical relationship with an asset’s current value (CV) and its attributable balance of gains in the revaluation reserve (RR):

This formula allows us to check whether our accounting records are correct for these assets. This is one of the fundamental checks for capital accounting.

The difference between the historical cost depreciation (held as a memorandum record) and the current cost depreciation is calculated to write down the revaluation reserve over the lifetime of the asset

Dr Revaluation Reserve

Depreciated historical cost is made up of:
• the purchase cost, plus the cost of any additional expenditure
• less accumulated historical cost depreciation
• less accumulated revaluation and impairment losses not covered by revaluation gains
• plus the amount of any reversed revaluation and impairment losses previously charged to revenue, adjusted for subsequent historical cost depreciation,

A reduction in CV will be posted to the RR until CV is reduced to depreciated historical cost. Further reductions are then charged to revenue and reversed out of the GF to CAA.

All historical cost adjustments are memo transactions in your asset register; there is no real double-entry impact.

Authorities go about keeping their historical cost records in different ways, but the best approach will involve as much automation as possible; when any kind of transaction is processed for an asset, process both the historical value and (if needed) current value adjustments simultaneously. For instance, any subsequent expenditure should be added to both the historical and the fair gross values at the same time.


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