What-If Analysis Is Showing Wrong Amount for JP-DB from the Next Year After Impairment (Doc ID 2201640.1)

Last updated on JANUARY 23, 2018

Applies to:

Symptoms

After posting Impairment, What-If Analysis is showing wrong amount for JP-DB from the next year.

Steps to Reproduce
*Calendar is the beginning of April

1.  2018-07 *** Addition

    Cost                       : 241749
    YTD depreciation           : 864
    Accumulated depreciation   : 218305
    Date in Service            : 01-APR-2003
    Depreciation method        : JP-DB 15YR
    Salvage value              : 10%
    Depreciation limit amount  : 95%


2.  2018-08 *** Impairment

    Impairment amount   : 1000


3.  2019-01 *** What-If Analysis

    Start Period     : 2019-01
    Number of Period : 6
    Analyze Fully Reserved Assets   : No
    Calculate Extended Depreciation : No


    What-If Depreciation Report ***
    Period   Fiscal                       New
    Name     Year    Depreciation Depreciation
    -------- ------- ------------ ------------
    2019-01  2018            259          259
    2019-02  2018            259          259
    2019-03  2018            256          256
    -------- ------- ------------ ------------
    2019-04  2019            226          226   <--Wrong. It should be 237
    2019-05  2019            226          226   <--Wrong. It should be 237
    2019-06  2019            226          226   <--Wrong. It should be 237

Data
FA_BOOKS ***
COST   ADJUSTED_COST DEPRN_METHOD RATE  SALVAGE_VALUE EOFY_RESERVE
------ ------------- ------------ ----- ------------- ------------
241749           133 JP-DB 15YR   0.142         24175       217441
241749         -2307 JP-DB 15YR   0.142         24175       217441

FA_DEPRN_SUMMARY ***
PERIOD  COUNTER DEPRN_AMOUNT DEPRN_RESERVE ADJUSTED_COST IMPAIRMENT_RESERVE
------- ------- ------------ ------------- ------------- ------------------
2018-06   24219            0        218305           133                  0
2018-07   24220          288        218593           133                  0
2018-08   24221          288        218881           133               1000
2018-09   24222          259        219140         -2307               1000
2018-10   24223          259        219399         -2307               1000
2018-11   24224          259        219658         -2307               1000
2018-12   24225          259        219917         -2307               1000


Current Calculation for FY2019
*It subtracts impairment_reserve double from adjusted_cost
adjusted_cost
    = cost - eofy_reserve - salvage - impairment_reserve - impairment_reserve
    = 241749 - (219917 + 259*2 + 256) - 24175 - 1000 - 1000
    = -5117

Theoretical YTD
    = trunc((adjusted_cost + Salvage value) * Rate)
    = trunc((-5117 + 24175) * 0.142)
    = 2706

Period Depreciation
    = round(Theoretical YTD * (1/12))
    = round(2706 * (1/12))
    = 226                     <--Wrong

Expected Calculation for FY2019
adjusted_cost
    = cost - eofy_reserve - salvage - impairment_reserve
    = 241749 - (219917 + 259*2 + 256) - 24175 - 1000
    = -4117

Theoretical YTD
    = trunc((adjusted_cost + Salvage value) * Rate)
    = trunc((-4117 + 24175) * 0.142)
    = 2848

Period Depreciation
    = round(Theoretical YTD * (1/12))
    = round(2848 * (1/12))
    = 237

Cause

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