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

Last updated on MARCH 19, 2018

Applies to:

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