Option Needed to Exclude Salvage Value from the Asset Impairment Carrying Amount Calculation in Accordance with IAS36. (Doc ID 2729967.1)

Last updated on NOVEMBER 08, 2022

Applies to:

Goal

Computation of Impairment in accordance with IAS36 Asset Impairment should be:

Carrying Cost = Cost - (Accumulated Depreciation + current period depreciation) - Impairment Reserve from prior transactions
Impairment Loss = Carrying Cost – Net Fair Value

But in Oracle Fixed Assets the Salvage Value is considered thus:

Carrying Cost = Cost - Salvage Value - (Accumulated Depreciation + current period depreciation) - Impairment Reserve from prior transactions
Impairment Loss = Carrying Cost – Net Fair Value

Calculation should be in accordance with IAS36 Asset Impairment.

Solution

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