Fully Depreciated Asset (NBV Is 1) by Impairment Starts Extended Depreciation in What-If Analysis Program

(Doc ID 2166092.1)

Last updated on JULY 28, 2016

Applies to:

Oracle Assets - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

Fully Depreciated Asset (NBV is 1) by Impairment Starts Extended Depreciation in What-If Analysis Program.

Example :
** JP-DB **

  1. Addition *** 2017-05(MAY-17)
    Book Name : JP-DB_BOOK
    Asset Number : JP-DB_BOOK-01
    Cost : 1856138
    YTD depreciation : 1752
    Accumulated depreciation : 1755799
    Date in Service : 01-APR-2003
    Depreciation method : JP-DB 10YR
    Salvage value : 10%
    Depreciation limit amount : 95%


  2. Impairment *** 2017-06(JUN-17)
    Impairment Date : 27-JUN-2017
    Impairment Loss : 96834

    => NBV is 1.

  3. What-If Analysis Program *** 2017-07(JUL-17)
    Book : JP-DB_BOOK
    Currency : JPY
    Star Period : JUL-17
    Number of Period : 20
    Asset Number : JP-DB_BOOK-01
    Analyze Fully Reserved Assets : Yes
    Calculate Extended Depreciation : Yes

    What-If Depreciation Report
    ===========================
    Period New
    Name Depreciation Depreciation
    -------- ------------ ------------
    JUL-17 0+ 0+
    AUG-17 0+ 0+
    SEP-17 0+ 0+
    OCT-17 0+ 0+
    NOV-17 0+ 0+
    DEC-17 0+ 0+
    JAN-17 0+ 0+
    FEB-17 0+ 0+
    MAR-17 0+ 0+
    APR-18 1,547+ 1,547+ <- Should be 0, should not start Extended Depreciation.
    MAY-18 1,547+ 1,547+
    JUN-18 1,547+ 1,547+
    JUL-18 1,547+ 1,547+
    AUG-18 1,547+ 1,547+
    SEP-18 1,547+ 1,547+
    OCT-18 1,547+ 1,547+


** JP-STL **

  1. Addition *** 2017-04(APR-17)
    Book Name : JP-STL_BOOK
    Asset Number : JP-STL_BOOK-01
    Cost : 150169087
    YTD depreciation : 0
    Accumulated depreciation : 64332434
    Date in Service : 01-APR-2003
    Depreciation method : JP-STL 30YR
    Salvage value : 10%
    Depreciation limit amount : 95%


  2. Impairment *** 2017-05(MAY-17)
    Impairment Date : 03-MAY-2017
    Impairment Loss : 85070790

    => NBV is 1.

  3. What-If Analysis Program *** 2017-06(JUN-17)
    Book : JP-STL_BOOK
    Currency : JPY
    Star Period : JUN-17
    Number of Period : 20
    Asset Number : JP-STL_BOOK-01
    Analyze Fully Reserved Assets : Yes
    Calculate Extended Depreciation : Yes

    What-If Depreciation Report
    ===========================
    Period Fiscal New
    Name Year Depreciation Depreciation
    -------- ------- ------------ ------------
    JUN-17 2017 0+ 0+
    JUL-17 2017 0+ 0+
    AUG-17 2017 0+ 0+
    SEP-17 2017 0+ 0+
    OCT-17 2017 0+ 0+
    NOV-17 2017 0+ 0+
    DEC-17 2017 0+ 0+
    JAN-17 2017 0+ 0+
    FEB-17 2017 0+ 0+
    MAR-17 2017 0+ 0+
    APR-18 2018 125,141+ 125,141+ <- Should be 0, should not start Extended Depreciation.
    MAY-18 2018 125,141+ 125,141+
    JUN-18 2018 125,141+ 125,141+


Cause

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