R12.1: After Impairment, JP-STL Asset is Getting Fully Reserved Although Net Book Value is Bigger than Salvage Value
(Doc ID 1906988.1)
Last updated on JANUARY 18, 2023
Applies to:
Oracle Assets - Version 12.1.3 and laterInformation in this document applies to any platform.
Symptoms
After posting Impairment, JP-STL XXYR asset is getting fully reserved although a net book value is bigger than a salvage value.
Expected Behavior
It should Not be getting a fully reserved asset because the net book value does not reach the salvage value.
Adjusting Salvage Value After Posting Impairment for Japanese Straight Line (JP-STL) (Doc ID 1905124.1)
Steps to Reproduce
1. 2014-02 *** Adding an asset
Cost : 12791655
YTD depreciation : 354970
Accumulated depreciation : 4614592
Date in Service : 01-APR-2003
Depreciation method : JP-STL 27YR (.037)
Salvage value : 10% (1279166)
Depreciation limit amount : 95% (639583)
2. 2014-03 *** Impairment
Impairment Amount : 6752357
3. 2014-03 *** After postting Impairment
FA_BOOKS ***
COST ADJUSTED_COST DEPRN_METHOD RATE SALVAGE_VALUE
-------- ------------- ------------ ----- -------------
12791655 11512489 JP-STL 27YR 0.037 1279166
12791655 74548 JP-STL 27YR 0.037 1279166
ALLOWED_DEPRN_LIMIT_AMOUNT EOFY_RESERVE PERIOD_COUNTER_FULLY_RESERVED
-------------------------- ------------ -----------------------------
639583 4259622
639583 4685584 24168 <-- Point
FA_DEPRN_SUMMARY ***
PERIOD_COUNTER DEPRN_AMOUNT YTD_DEPRN DEPRN_RESERVE
-------------- ------------ --------- -------------
24166 0 354970 4614592
24167 35497 390467 4650089
24168 35495 425962 4685584 <--- Postting Impairment
ADJUSTED_COST SYSTEM_DEPRN_AMOUNT IMPAIRMENT_RESERVE
------------- ------------------- ------------------
11512489 0
11512489 35497 0
11512489 35495 6752357 <--- Postting Impairment
Calculation
Net book value
= Cost - Deprn_Reserve(after Impairment) - Impairment_Reserve
= 12791655 - 4685584 - 6752357
= 1353714
Salvage value
= 1279166
Expected Behavior
PERIOD_COUNTER_FULLY_RESERVED should be null, instead of 24168.
Net book value(1353714) is bigger than salvage value(1279166).
Therefore, this asset should Not be getting a fully reserved asset.
Changes
Cause
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In this Document
Symptoms |
Changes |
Cause |
Solution |
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