JP-2X0DB: Rate In Use Does Not Revert to Original Rate by Depreciation Rollback in the Last Period of the Year (Doc ID 2070152.1)

Last updated on FEBRUARY 22, 2019

Applies to:

Symptoms

After posting Impairment, rate in use does not revert to original rate by Depreciation Rollback when performing Depreciation without closing the period and rate in use is changed to revised rate from original rate in the last period of the year.

Summary
1. Asset with JP-200DB or JP-250DB is using original rate.
2. Performing Impairment
3. Performing Depreciation without closing the period in the last period of the year
4. Rate in use is changed to revised rate from original rate by Depreciation
5. Rollback the depreciation amount of the last period of the year when performing Depreciation Rollback API or Transfer or Reclass
6. Rate in use does not revert to original rate. It should revert to original rate


Condition
- Performing Impairment more than once in the year and rate in use is changed to revised rate from the next year of after the Impairment
- Excluding Depreciation Rollback which is performed automatically when asset is changed


Steps to Reproduce
1.  2016-01 *** Addition

    Cost                               : 28400000
    YTD depreciation                   : 3237597
    Accumulated depreciation           : 20845596
    Date in Service                    : 16-MAY-2013
    Depreciation method                : JP-200DB 5
    Salvage value                      : 0
    Depreciation limit amount          : 1


2.  2016-01 *** Impairment

    Impairment Amount : 50000


3.  2016-03 *** Check the asset

    Cost                               : 28400000
    YTD depreciation                   : 3835486
    Accumulated depreciation           : 21443485
    Date in Service                    : 16-MAY-2013
    Depreciation method                : JP-200DB 5
    Salvage value                      : 0
    Depreciation limit amount          : 1
    Impairment Reserve                 : 50000

    FA_BOOKS ***
    COST     ADJUSTED_COST DEPRN_METHOD RATE_IN_USE
    -------- ------------- ------------ -----------
    28400000      10792001 JP-200DB 5           0.4
    28400000       7144671 JP-200DB 5           0.4 <--- It is original rate

    FA_DEPRN_SUMMARY ***
    PERIOD  COUNTER DEPRN_AMOUNT YTD_DEPRN DEPRN_RESERVE ADJUSTED_COST IMPAIRMENT_RESERVE
    ------- ------- ------------ --------- ------------- ------------- ------------------
    2015-12   24189            0   3237597      20845596      10792001                  0
    2016-01   24190       359733   3597330      21205329      10792001              50000
    2016-02   24191       238156   3835486      21443485       7144671              50000


4.  2016-03 *** Run Depreciation without closing the period

    Cost                               : 28400000
    YTD depreciation                   : 4073638
    Accumulated depreciation           : 21681637
    Date in Service                    : 16-MAY-2013
    Depreciation method                : JP-200DB 5
    Salvage value                      : 0
    Depreciation limit amount          : 1
    Impairment Reserve                 : 50000

    FA_BOOKS ***
    COST     ADJUSTED_COST DEPRN_METHOD RATE_IN_USE
    -------- ------------- ------------ -----------
    28400000      10792001 JP-200DB 5           0.4
    28400000       7144671 JP-200DB 5           0.5 <---It is changed to revised rate

    FA_DEPRN_SUMMARY ***
    PERIOD  COUNTER DEPRN_AMOUNT YTD_DEPRN DEPRN_RESERVE ADJUSTED_COST IMPAIRMENT_RESERVE
    ------- ------- ------------ --------- ------------- ------------- ------------------
    2015-12   24189            0   3237597      20845596      10792001                  0
    2016-01   24190       359733   3597330      21205329      10792001              50000
    2016-02   24191       238156   3835486      21443485       7144671              50000
    2016-03   24192       238152   4073638      21681637       7144671              50000


5.  2016-03 *** Depreciation Rollback API (=fa_deprn_rollback_pub.do_rollback)

    FA_BOOKS ***
    COST     ADJUSTED_COST DEPRN_METHOD RATE_IN_USE
    -------- ------------- ------------ -----------
    28400000      10792001 JP-200DB 5           0.4
    28400000       7144671 JP-200DB 5           0.5 <---It does not revert to original rate


6.  2016-03 *** Run Depreciation without closing the period

    FA_BOOKS ***
    COST     ADJUSTED_COST DEPRN_METHOD RATE_IN_USE
    -------- ------------- ------------ -----------
    28400000      10792001 JP-200DB 5           0.4
    28400000       7144671 JP-200DB 5           0.5

    FA_DEPRN_SUMMARY ***
    PERIOD  COUNTER DEPRN_AMOUNT YTD_DEPRN DEPRN_RESERVE ADJUSTED_COST IMPAIRMENT_RESERVE
    ------- ------- ------------ --------- ------------- ------------- ------------------
    2015-12   24189            0   3237597      20845596      10792001                  0
    2016-01   24190       359733   3597330      21205329      10792001              50000
    2016-02   24191       238156   3835486      21443485       7144671              50000
    2016-03   24192       297690   4133176      21741175       7144671              50000

    Depreciation amount is wrong due to using revised rate

Cause

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