How to recalculate asset values in depreciation area

[Former Member]

Hi All,

Please let me know how  to recalculate all  asset values in depreciation area(01) with newly effected IFRS rules.

what will be the procedure for it please let me know in sequence steps

Regards,

Ravan

[ajaycwa1981 · Accepted solution]

Hi Ravan

1. IFRS implementation has 2 parts - Process Enablement & Technical Enablement

2. For Process Enablement - You must do a Study In-House or hire some external service like KPMG,PWC, EY etc. They will basically educate you on what and how will be the differential accounting treatment from IFRS point of view

For example,

a. in AA, you must depreciation assets based on useful life..

b. There is also a concept of Componentization of assets... This means instead of treating the whole machinery as one asset, you will treat eat major component as an asset, as each one of these components may have a different useful life

3. Once (2) is ready, you will now do the Technical Enablement

For 2.a - You will introduce Dep Keys based on useful life. And change the Dep Keys in asset master

For 2.b - It is a process change. You will create Sub-Assets from AS11. basically, you will treat each component of the machinery as a sub-asset

So when you do Asset Acquisition (F-90) you will post it for each sub-asset.. OR acquire in one main asset and then do ABUMN to each sub asset

4. Incase there is a requirement to revaluate an asset, you can do from ABAW/ABAWN

Hope this helps

Br. Ajay M

[Former Member · Accepted solution]

HI Ajay,

Thank you so much being updated...

For 2.a - You will introduce Dep Keys based on useful life. And change the Dep Keys in asset master

if it is finalized i can create and assign new Dep keys  in all asset master data through LSMW.

How can i recalculate  assets with newly assigned Dep keys please let me know..

can i do recalculate for previous year also please let me know

4. In case there is a requirement to reevaluate an asset, you can do from ABAW/ABAWN

Here no need to create Dep keys and manually reevaluate an asset by giving Transaction Type please correct me if i wrong

Regards,

Ravan

[ajaycwa1981 · Accepted solution]

Hi Ravan

For 2.a - Recalculation of Dep happens from AFAR transaction.. It will only recalculate depreciation for Fiscal Years that are open in AA

usually, previous years would be closed. So revaluation is your best option

For 4 - Yes, you are right.. If you just want to revaluate the asset by retaining the existing depreciation key, you can do ABAW(N) directly...

As mentioned in 2.a in this reply, you may have to change dep key and also revaluate the asset, depending on the business need

Ajay M

[Former Member · Accepted solution]

Hi Ajay,

Thank you for reply...

Now understand the concept of IFRS in terms of both process Enablement as well technical Enablement.

Finally what is the best way of reevaluation of assets..

If i want to reevaluate the assets by retaining the same Dep key..ABAW(N),(can i give previous year date aslo)

Please let me know what is the best method for reevaluate of assets  AFAR or ABAW(N)

Regards,

Ravan

[ajaycwa1981 · Accepted solution]

Hi Ravan

AFAR will only recalculate the depreciation for open fiscal years once you change the Dep Key or useful life

Inorder to revaluate the asset (Increase or decrease the values) you must use ABAW(N)

Both are meant for different purposes

Ajay M

[michael_kozlowski]

Use trx AFAR to recalculate asset values.