Revaluate fixed asset cost and depreciation (Russia)

An organization can independently change the cost of a fixed asset one time per year at the end of the reporting year (usually on 12.31). Revaluation of fixed assets can also be done because of a decision of the state. As a rule, revaluation of fixed assets cost is accompanied by a revaluation of depreciation. Two methods can be used to change the cost of fixed assets as a result of revaluation of fixed asset cost:

• Indexing – Indices are used. These indices are usually set by the state. In this case, the initial cost of the fixed asset and the amount of accrued depreciation are multiplied by the corresponding indices.
• Direct recalculation (direct evaluation) – Documented data about the market price of the fixed asset is used. At the same time, the amount of depreciation is subject to indexation by the conversion factor. The conversion factor is calculated as the ratio of the object's new cost to its old cost.

As a result of revaluation of fixed asset cost and depreciation, the following events occur:

• Ledger and fixed asset transactions are created. The fixed asset transactions that are created have transaction types of Cost revaluation and Depreciation revaluation.
• On the Balance by FA page, the Cost revaluation and Depreciation revaluation fields are filled in, and the value in the Net book value field is increased or decreased by the revaluation transaction amount.

To revaluate fixed asset cost and depreciation, follow these steps.

1. Select Fixed assets (Russia) > Journals > Periodic journals > FA revaluation to open the FA revaluation page.

2. Select New to create a revaluation journal.

3. The Revaluation period and State on fields are automatically set to the current period and date. However, you can update these fields as you require. The State on field specifies the date that depreciation revaluation is calculated from.

4. In the Fixed asset journal name field, select a journal name. This journal name is used to create the Fixed asset journal when the revaluation journal is closed.

5. The FA journal field is automatically set, based on the number sequence setting, when the Fixed asset revaluation journal is closed.

6. Select Lines, and then, in the Revaluation lines creation dialog box, select the RAP value model. To set a filter to select fixed assets for revaluation, on the Records to include Fast Tab, select Filter. Then select OK.

   On the FA revaluation lines page, the system creates lines for fixed assets that have the selected value model.

   The Balance cost field is set to Net book value, and the Replacement cost field is set to the new fixed asset cost. The Balance cost value corresponds to the value in Net book value field on the Balance by FA page (Fixed assets (Russia) > Common > Fixed assets, select Value models on the Fixed assets page, and then select Balance on the FA value models page).

   Note

   You can manually set the Replacement cost field. In this case, the system recalculates the factor. Alternatively, you can manually set the Factor field. In this case, the system recalculates the replacement cost.

7. You can add and remove lines as you require:

   • To add a line, select New. In the Revaluation lines creation dialog box, select the fixed asset inventory number and value model, and then select OK. If you don't specify the value model, the system creates lines for all value models that are set up in the fixed asset.
   • To remove a line, select it, and then select Delete

8. Follow one of these steps:

   • To revaluate fixed asset cost and depreciation by using the direct revaluation method, in the Replacement cost field, enter the market cost of fixed assets.
   • To revaluate fixed asset cost and depreciation for all fixed assets on the FA revaluation lines page by using the indexing method, select Revaluation. In the Group revaluation dialog box, select the value model that the revaluation should be calculated for, and enter the factor. To set a filter to select fixed assets for revaluation, on the Records to include Fast Tab, select Filter. Then select OK. The Factor and Replacement cost fields are filled in for all lines.

9. Close the FA revaluation lines page.

10. On the FA revaluation page, on the Action Pane, select Close to confirm the revaluation results.

    After the Fixed asset revaluation journal is closed and the Fixed asset journal is created, the Fixed asset journal number is filled in, and the FA journal button on the Action Pane becomes available.

11. Select FA journal, and then, on the FA journal page, select Lines. The Voucher transaction page shows revaluation transactions. You can correct these transactions as you require.

12. Select Post > Post to post the journal.

13. Validate the balance in the value model (Fixed asset (Russia) > Fixed assets > Value models > Balance). The values in the Cost revaluation and Depreciation revaluation fields are updated.

Reverse fixed asset revaluation transactions

By default, when you reverse transactions, the reversal date is equal to the original transaction date. However, you can specify a different reversal date.

1. Go to Fixed assets (Russia) > Fixed assets, and on the Action Pane, select Value models.
2. On the FA value models page, on the Action Pane, select Transactions.
3. On the FA transactions page, select and transaction and on the Action Pane, select Reverse transaction.
4. In the Reverse transactions dialog box, change the transaction reversal date as needed and then select OK. A transaction to reverse the original transaction is created and added to the FA transactions page.
5. Select Voucher, and on the Voucher transactions page, view the transactions in the ledger.