Revaluation

Screen management

This function is composed of:

• A header, used to specify the processing options and to choose the company and sites to which the assets to be processed belong,
   
• A Parameters tab, used to enter the revaluation parameters or to request the cancellation of the revaluation,
   
• An Extended selection tab, used to select the assets to be processed.

Management method for the window

The management is the same for this window as for all the mass processing functions that can be applied to assets.

Process setup

First of all, the user needs to set up the process or to recall an existing setup using the button. The existing setup will have been previously saved under a Memo code.

The setup of the processing consists in:

- Entering the processing options. By default, the process is carried out in Simulation mode and generates a Detailed log file presenting the values of the various parameters applied during the process, the details of the old and new values for each of the updated assets and the list of assets containing errors, as well as the error reason.

- Selecting the company and the potential sites where the assets are registered.

- Selecting the plan to which the revaluation applies.

- Entering the parameters linked to the revaluation.

- Carrying out the selection of assets potentially impacted by the process (Extended selection tab).

Note: when the setup of a processing is completed, it is possible to save it under an identification code using the button. It is then possible to recall it at a later date for use in a revaluation process.

Running the process

Once the setup is done, it is possible to:

• Either directly apply the entered parameters to each of the selected assets, by clicking . A consistency control in the event of asset modifications is then performed: the asset plans are updated with the new calculated values; where an error occurs for an asset, the previous values are kept and an error message is displayed in the log file report.
  Note: When the revaluation mode is by Market value, the user cannot access the button. Access the Control window is mandatory in order to enter the market value of each asset.
   
• Or go through an intermediate control stage of the entered parameters by clicking the button.

A window is displayed showing a table that contains the list of selected assets, as well as the new values for the plan for which a revaluation was requested.

This table is used to:

- view the calculated new values,
- identify with different colors the potential lines with errors along with the corresponding error messages. The faulty asset values are not revalued; they are displayed with their original values.
- modify the value of the Coefficient applied, at each asset level, if the revaluation is carried out by Coefficient or by Index,
- enter the Market value, in the case of a revaluation by Market value.

The modification of a coefficient value for an asset or the entry of the market values must be confirmed by using . To cancel the modifications in progress, click the button.
Once the manual adjustments are completed, click the  button to close the control window; the system displays again the entry window for parameters, which enables the user either to validate the mass update by clicking , or to abort the update by clicking the button.

Header

Options

• Simulation: this box, checked by default, is used to carry out a revaluation simulation on the selected assets. The modification of the assets is not recorded in the database.
  The impact of the processing on the assets can be viewed in the log file displayed at the end of the processing.
   
• Detailed log file:
  A log file is systematically displayed on completion of the process, presenting the process options, the selection criteria, the setup values entered, as well as the number of selected assets, the number of updated assets and the number of assets not processed as a result of an error. Assets with errors are listed with their error reason.
  
  When this check box is selected, the log file is displayed in the form of a detailed report presenting, in addition to the information listed above, the list of assets successfully processed. The following values are shown for each asset, before and after revaluation: Revalued balance sheet value, Market value, Coefficient, Net value and Revaluation amount.

Note: the viewing and printing of the log files is possible at any time via the Print log file print request of the ATRACE report code, obtained from the Supervisor function in the Print/Group print menu.

Company selection – Site selection

These tables display both the list of managed companies for which the user is authorized and the list of sites corresponding to these companies where the user is authorized.
 When the company setupACCPERCTL - Control of accounting periods (chapter AAS, group CPT) has Yes for value, the company is not displayed in the list as soon as at least of one its context is not synchronized with the accounting period/fiscal breakdown. It is then necessary to launch the Context synchronization process.
A desynchronization context can be viewed on the Detailed status of contexts,Calculation  tab (the value of the Modification type field is CNX and the value of the Modified parameter field is DESYNC).

It is necessary to select the company and the sites in which the assets involved in the processing, are registered. After selecting the company, all sites of the companies are selected by default. The user can clear those that are not impacted by the processing.
Provided they belong to the same company, the site(s) involved in the processing can be directly selected, in which case the company to which they belong is automatically selected.

Reminder: the assets must be registered in sites attached to the same company. Selecting a second company, or sites linked to another company, leads to the de-selection of the first company selected, after validation of a confirmation message.

After selecting the company or site(s), it is possible to refine the selection by entering other selection criteria in the Extended selection tab.

Tab Setup definition

Standard revaluation

Reminder: A standard revaluation concerns all the plans, except the Chart of accounts and the free plans submitted to the CoA standard or the other standards of a French legislation company.

This revaluation applies:

1/ Either to the values of the fiscal year start or of the period start.It can be implemented:

•  Or by applying a constant coefficient, or variable coefficients or indexes, from a table entered by the user. These coefficients or indexes are applied to the Balance sheet value, the Depreciation totals, the Impairment loss (and Recovery) and the Net value.
   
• Either by taking the asset Market value into account and transferring it to the Balance sheet value with a reset of the depreciation and impairment loss (and recovery) totals to zero: this means that the new asset value will be depreciated over the depreciation residual duration.

2/ Or to the values of the fiscal year end. It can be implemented:

• Or by applying a constant coefficient, or variable coefficients or indexes, from a table entered by the user. These coefficients or indexes are only applied to the fiscal year end Net value. The amounts (basis, depreciation total and charge) are not updated for the current fiscal year. These values are updated, at the depreciation plan level, in the next fiscal year.
   
• Or by taking into account the Market value of the asset. The balance sheet value, the depreciation totals and the net value of the asset are not updated in the current fiscal year. These values are updated, at the depreciation plan level, in the next fiscal year.

Revaluation by application of a fixed Coefficient or a Coefficient from the tabl

• Application of a fixed Coefficient

  - Upon completion of a fiscal year end revaluation, only the fiscal year end net value is updated; no depreciation plan value is updated in the current fiscal year. The impact of the revaluation is seen, following the launch of the calculation processing, in the depreciation plan of the next fiscal year (the amount of the revaluation is displayed in the "Revaluation reserve total").

  - Upon completion of a revaluation of fiscal year start or period start, the values are updated according to the following rules:

Case 1:No depreciation exists prior to the revaluation.

	Value updating
Revaluated balance sheet value	Revaluated balance sheet value before revaluation x Fixed coefficient
Depreciation Total	Depreciation total before revaluation x Fixed coefficient
NVT after revaluation	Revaluated balance sheet value – Revaluated depreciation total
Period revaluation	NVT for transfer after revaluation – NVT for transfer before revaluation

For example :
Period start situation

Revaluated balance sheet value:   1,000
Depreciation total:    350
                                     -------
Accounting net value:     650

Constant coefficient: 1.20

Situation after revaluation:

New revaluated balance sheet value: 1,000 x 1.20 =   1.200
New depreciation total: 350 x 1.20 =  46,550
                                                                        -------
New accounting net value                         780
Period revaluation: 780 - 650                          130

Case 2:Depreciations exist prior to the revaluation.

	Value updating
Revaluated balance sheet value	Revaluated balance sheet value before revaluation x Fixed coefficient
Depreciation Total	Actual deprec. total before revaluation x Fixed coefficient
Period start depreciation total	Period start depreciation total x Fixed coefficient
Period start impairment loss increase total	Period start impairment loss increase x Fixed coefficient
Period start depreciation balance	Period start depreciation balance x Fixed coefficient
NVT after revaluation	NVT before revaluation x Fixed coefficient
Period revaluation	NVT for transfer after revaluation – NVT for transfer before revaluation

 Example (with the assumption that the impairment loss increase limit = 0) :

Period start situation

Revaluated balance sheet value:          1,000
Actual depreciation total:     350
Depreciation total:                 (50)
Impairment loss increase total:      (30)
Depreciation balance (50 -30):       20
                                             -------
Actual accounting net value:     630

Constant coefficient: 1.20

Situation after revaluation:

Revaluated balance sheet value:               1,000 x 1.20 =   1.200
Depreciation total:                 350 x 1.20 =     420
Revaluated depreciation total:           50 x 1.20 =    (60)
Revaluated increase total:                   30 x 1.20 =    (36)
Revaluated depreciation balance (60 - 36)  20 x 1.20 =    24
                                                                         -------
New accounting net value       630 x 1.20 =   756
Period revaluation:                       756- 630    =  126

• Application of a table coefficient

At the end of the revaluation, the values are updated according to the same rules as the ones applied for constant coefficients. These rules are described above.

The coefficient to be applied is found in the Revaluation coeffs. and indexes table, whose reference is specified in the parameters. The correct access key corresponds to the year and month (if entered) in the Date field chosen as the Date Criterion, and to the value in the field chosen as the Nature Criterion.

  If no coefficient in this table has been loaded in relation to this access key, the link is automatically excluded from the processing. 

Revaluation by Index

 On completion of the revaluation, the values for each asset are updated by application of a coefficient determined from the indexes found in the Revaluation coeffs. and indexes table, which reference is specified at the level of the parameters.

This coefficient is determined as follows: Current index / Initial index

- The correct access key for the initial index corresponds to the year and any month (if entered) in the Date field chosen as the Date Criterion and to the value in the field chosen as the Nature criterion.

- The correct access key for the current index corresponds to the year and possibly to the month of the current period (or the current fiscal year if the fiscal year is not divided into periods) and to the value in the field chosen as the Nature Criterion.

  If at least one of the two indices is not specified, the asset is automatically excluded form the processing.

After the coefficient determination, the calculation of the values after revaluation complies with the same rules as those defined for the application of a fixed coefficient. These rules are described above.

Revaluation by Market Value

The Market value displayed at the level of each asset is the value entered in the Market value option window in the Fixed assets management function. It can be modified.

- Upon completion of a fiscal year end revaluation, no depreciation plan value is updated in the current fiscal year. The impact of the revaluation is seen, following the launch of the calculation processing, in the depreciation plan of the next fiscal year (the amount of the revaluation is displayed in the "Revaluation reserve total").

- Upon completion of a revaluation of fiscal year start or period start, the values are updated according to the following rules:

	Value updating
Revalued balance sheet value	Market value
Period start deprec. total	0
Period start depreciation total	0
Period start impairment loss increase total	0
Period start depreciation balance	0
NVT after revaluation	Market value
Period revaluation	NVT for transfer after revaluation – NVT for transfer before revaluation

Example 1 (period start revaluation): No depreciation exists prior to the revaluation.

Period start situation

Revaluated balance sheet value:   1,000
Depreciation total:   350
                                     -------
Accounting net value:    650

Market value: 700

Situation after revaluation:

New revaluated balance sheet value:  700
New depreciation total:   0
                                                -------
New actual accounting NV:     700
Period revaluation: 700 - 650  = 50

 Example 2 (period start revaluation): There are depreciations prior to the revaluation (with the assumption that the impairment loss increase limit = 0):

Period start situation

Revaluated balance sheet value:           1,000
Actual depreciation total:      350
Depreciation total:                  (50)
Impairment loss increase total:        (30)
Depreciation balance (50 -30):         20
                                               -------
Actual accounting net value:     630

Market value: 700

Situation after revaluation:

New revaluated balance sheet value:      700
New depreciation total:       0
Depreciation total:                          0
Impairment loss increase total:               0
                                                     -------
New actual accounting NV:           700
Period revaluation:   700- 630    =  70

Example 3 (fiscal year end revaluation).

Period start situation

Revaluated balance sheet value: 1,000
Depreciation total: 350
-------
Net value: 650

---> Market value: 700

Situation in the current fiscal year, after revaluation:

• The situation remains unchanged

Revaluated balance sheet value: 1,000
Depreciation total: 350
-------
Net value: 650

• The amount of the revaluation (50) and the information of the revaluation: date (31/12/XXXX), effective date (fiscal year end), type (Market value) are displayed in the depreciation plan of the last period of the fiscal year.

Situation in the next fiscal year:

New revaluated balance sheet value: 700
New depreciation total: 0
-------
New actual NV: 700

• The amount of the revaluation is recorded in the "Revaluation reserve total" in the first period of the fiscal year.

Accounting free revaluation

Reminder: a standard revaluation only concerns the Chart of accounts and the free plans submitted to the CoA standard or the other standards of a French legislation company.

This revaluation applies only to the values of the fiscal year start. It can be implemented:

• Or by applying a constant coefficient, or variable coefficients or indexes, from a table entered by the user. These coefficients or indexes are applied to the Net value. The revaluation variance is then deferred on the balance sheet value.
   
• Or by taking the Market value of the asset into account and transferring it to the Net value. The revaluation variance is then deferred on the balance sheet value. This means that the new asset value will be depreciated over the depreciation residual duration.

Irrespective of the method applied (taking the market value into account or applying a coefficient), the impact on the revaluation is the following:

• The former totals are not updated, only the depreciation basis and the net value are updated.
• The revaluation on the Chart of accounts is automatically deferred on the Fiscal plan (with a consequence on the Exceptional depreciation) and, if managed, on the Minimum plan (with a consequence on the Deferred depreciation).

Example of revaluation with application of a coefficient: 1.30

Fiscal year start situation before revaluation:

Chart of accounts
Revaluated balance sheet value: 1,000
Depreciation total: 200
                                    ------
Accounting net value:  800

Fiscal plan
Revaluated balance sheet value: 1,000
Depreciation total:  450
                                     ------
Accounting net value:        550

Book vs. Tax provision: 450 - 200 = 250

Situation after revaluation:

Chart of accounts
Actual accounting net value: 800 x 1.30 = 1 040
Revaluation variance: 800 - 1,040 = 240
Revaluated balance sheet value:  1,000 - 240  = 1,240
Depreciation total (unchanged): 200
Depreciation expense (calculated from the revaluated balance sheet value): 260


Fiscal plan
Revaluated fiscal net value = revaluated net value: 1,040
Revaluated fiscal balance sheet value = Revaluated balance sheet value: 1,240
Depreciation total before revaluation (unchanged):  450
Depreciation expense (calculated from the revaluated balance sheet value): 468
                                    
Book vs. Tax provision: 468 - 260 = 208
Book vs. Tax provision reversal (linked to the revaluation): 250

Tab Extended selection

Description of the revaluation/revaluation cancellation process

1/ Revaluation processing

For each selected asset where no error has been detected, the revaluation process carries out the following operations:

• Update, according to the chosen revaluation method (Coefficient, Index, Market value), the values in the depreciation plan concerned by the re-evaluation.
  This update is carried out according to the terms described above.
  See below for some examples of the consequences on the depreciation schedule according to the selected implementation date (beginning of the current fiscal year or of the current period).
   
• Generation of a Revaluation event (FASREEVAL).
  - The accounting effective date is recorded in the EVTDAT field; it receives the highest date among the following dates: date displayed in the Revaluation date and Deprec. start date fields.
  - The accounting effective date is saved in the CPTDATINT field; it is the latest date of the following dates: Start date of the current period, Depreciation start date.
   
  - In the case of a fiscal year end revaluation, the values attached to the revaluation are stored in the event even if the effect on the depreciation plan is seen only in the next fiscal year. Indeed, the posting of the revaluation is performed on the last period of the current fiscal year.
   
  The user can view the events in the Events journal window that can be accessed from the Other info tab of the Fixed assets management function.
   
• Archiving, in a dedicated table (DEPRECARC) of the depreciation plan before revaluation, if the company is submitted to the French legislation (FRA). It can be viewed in the Archived plan tab, accessible from the inquiry of the event detail.
  

In case of a revaluation by Market value:

• Impact of this value, when it is updated, on each plan already carrying a Market value, providing the period start date (or the fiscal year, if the fiscal year is not divided into periods) is equal to the period start date for the revalued plan.
  
• Loading the name of the expert who valued the asset and the revaluation reason.
  
  This information appears in the Market value option window, in the "financial assets" management function.
  
• The revaluation by Market value of a depreciated asset, according to a non-residual method, involves, in this plan, a change in depreciation method that will automatically take the Equivalent residual method value. This is used to process the revaluation in a long-term fashion, by depreciating the new net value of the asset for the duration of the residual depreciation.

Examples of depreciation plans after revaluation by market value

Example 1: Revaluation by Market value with implementation date at current fiscal year start

- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Depreciation total on FY-1 end: 3005.46
- Current fiscal year: [01/01/2006 - 31/12/2006]
- Current period: [4/1/2006 - 6/30/2006]
- Revaluation at market value to 8,000

Fiscal year	Period	Fiscal year start total	Fiscal year charge	Period charge	Period end total
01/01/04 - 31/12/2004			1,005.46
01/01/05 - 31/12/2005			2,000.00
01/01/06 - 31/12/06	01/01/06 - 31/03/06	3,005.46	2,000.00	493.15	493.15
	01/04/06 - 30/06/06	(1)	(2)   2,286.61	(3)   640.76	1,133.91
	01/07/06 - 30/09/06		2,286.61	576.35	1,710.26
	01/10/06 - 31/12/06		2,286.61	576.35	2,286.61
01/01/2007 - 31/12/2007	01/01/07 - 31/03/07	2,286.61	2,286.61	563.82	563.82
	01/04/07 - 30/06/2007	2,286.61	2,286.61	570.09	1,133.91
	01/07/07 - 30/09/2007	2,286.61	2,286.61	576.35	1,710.26
	01/10/07 - 31/12/07	2,286.61	2,286.61	576.35	2,286.61
01/01/08 - 31/12/08		4,573.22	2,292.87
01/01/09 - 31/12/2009		6,866.09	1,133.91
01/01/10 - 31/12/10		8,000.00

(1) The revaluation recorded in the current period [01/04/06 - 30/06/06] takes effect on 01/01/2006. This has the following consequences:
- the recovery of the depreciations already posted: 3,005.46 for previous FYs
- the update of an asset gross value at 01/01/2006: 8,000 instead of 10,000
- the beginning of a new depreciation plan, with 8 000 as depreciation value, and the residual value i.e. 1,187 days of the [01/04/06 - 06/30/2009] period, as depreciation duration.

(2) the new charge of 2006 fiscal year equals to: 8,000 x (365 days / 1,277 days) = 2,286.61

(3) The depreciation expense for the current period is:  2,286.61 x (181 days / 365 days) - 493.15 = 640.76
181 days corresponds to the [01/01/06 - 30/06/2006] period, since the effective date of the revaluation is 01/01/06. The charge of the current fiscal year includes the adjustment of the previous periods depreciation totals (- 493.15).

Example 2: Revaluation by Market value with the implementation date at current period start

- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Depreciation total on FY-1 end: 3005.46
- Current fiscal year: [01/01/2006 - 31/12/2006]
- Current period: [4/1/2006 - 6/30/2006]
- Revaluation at market value to 8,000

Fiscal year	Period	Fiscal year start total	Fiscal year charge	Period charge	Period end total
01/01/04 - 31/12/2004			1,005.46
01/01/05 - 31/12/2005			2,000.00
01/01/06 - 31/12/06	01/01/06 - 31/03/06	3,005.46	2,000.00	493.15	493.15
	01/04/06 - 30/06/06	(1)	(2)   1,853.41	(3)   613.31	613.31
	01/07/06 - 30/09/06		1,853.41	620.05	1,233.36
	01/10/06 - 31/12/06		1,853.41	620.05	1,853.41
01/01/2007 - 31/12/2007	01/01/07 - 31/03/07	1,853.41	2,459.98	606.57	606.57
	01/04/07 - 30/06/2007	1,853.41	2,459.98	613.31	1,219.88
	01/07/07 - 30/09/2007	1,853.41	2,459.98	620.05	1,839.93
	01/10/07 - 31/12/07	1,853.41	2,459.98	620.05	2,459.98
01/01/08 - 31/12/08		4,313.39	2,466.73
01/01/09 - 31/12/2009		6,780.12	1,219.88
01/01/10 - 31/12/10		8,000.00

(1) The revaluation recorded in the current period [01/04/06 - 30/06/06] takes effect at 01/04/2006. This has the following consequences:
- the recovery of the depreciations already posted: 3,005.46 for previous FYs and 493.15 for the FY
- the update of an asset gross value at 01/04/06: 8,000 instead of 10,000
- the beginning of a new depreciation plan, with 8,000 as depreciation value, and the residual value i.e. 1,187 days of the [01/04/06 - 30/06/2009] period, as depreciation duration.

(2) the new charge of 2006 fiscal year equals to: 8,000 x (275 days / 1,187 days) = 1,853.41

(3) The depreciation expense for the current period is:  1853.41 x (91 days / 275 days) = 613.31
91 days corresponds to the [01/04/2006 - 30/06/2006] period, since the effective date of the revaluation is 01/04/2006.

Examples of depreciation plans after revaluation by Coefficient

Example 3: : Revaluation by Coefficient with an effective date at the start of the current fiscal year.

- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Depreciation total on FY-1 end: 3005.46
- Current fiscal year: [01/01/2006 - 31/12/2006]
- Current period: [4/1/2006 - 6/30/2006]
- Revaluation by a coefficient of 1.20

Fiscal year	Period	Fiscal year start total	Fiscal year charge	Period depreciation charge	Period end total
01/01/04 - 31/12/2004			1,005.46
01/01/05 - 31/12/2005			2,000.00
01/01/06 - 31/12/06	01/01/06 - 31/03/06	3,005.46	2,000.00	493.15	493.15
	01/04/06 - 30/06/06	(1)   3,606.55	(2)   2,400.00	(3)   696.99	1,190.14
	01/07/06 - 30/09/06	3,606.55	2,400.00	604.93	1,795.07
	01/10/06 - 31/12/06	3,606.55	2,400.00	604.93	2400.00
01/01/2007 - 31/12/2007	01/01/07 - 31/03/07	6,006.55	2,400.00	591.78	591.78
	01/04/07 - 30/06/2007	6,006.55	2,400.00	598.36	1,190.14
	01/07/07 - 30/09/2007	6,006.55	2,400.00	604.93	1,795.07
	01/10/07 - 31/12/07	6,006.55	2,400.00	604.93	2,400.00
01/01/08 - 31/12/08		8,406.55	2,400.00
01/01/09 - 31/12/2009		10,806.55	1,193.45
01/01/10 - 31/12/10		12,000.00

(1) The revaluation recorded in the current period [01/04/06 - 30/06/06] takes effect on 01/01/2006. This has the following consequences:
- the revaluation of the depreciation total at the end of E-1: 3,005.46 x 1.2 =   3,606.55
- the revaluation of the asset gross value on 01/01/2006: 10,000 x 1.2 =   12,000
- the continuing depreciation plan taking into account these revaluated values, while keeping, however, the depreciation method and adjusting in the current period the depreciation total for the closed periods of FY E.

(2) the new charge of 2006 fiscal year equals to: 12,000 x 20% =   2,400.00

(3) The depreciation expense for the current period is:  2,400.00 x (181 days / 365 days) - 493.15 = 696.99
181 days corresponds to the [01/01/06 - 30/06/2006] period, since the effective date of the revaluation is 01/01/06.

Example 4: : Revaluation by Coefficient with an effective date at start of the current period

- Depreciation start date: 01/07/2004 (i.e. 184 holding days)
- Asset value: 10,000
- Method: linear
- Duration: 5 years
- Depreciation total on FY-1 end: 3005.46
- Current fiscal year: [01/01/2006 - 31/12/2006]
- Current period: [4/1/2006 - 6/30/2006]
- Revaluation by a coefficient of 1.20

Fiscal year	Period	Fiscal year start total	Fiscal year charge	Period depreciation charge	Period end total
01/01/04 - 31/12/2004			1,005.46
01/01/05 - 31/12/2005			2,000.00
01/01/06 - 31/12/06	01/01/06 - 31/03/06	3,005.46	2,000.00	493.15	493.15
	01/04/06 - 30/06/06	(1)   3,606.55	(2)   2,400.00	598.36	(3)   1,190.14
	01/07/06 - 30/09/06	3,606.55	2,400.00	604.93	1,795.07
	01/10/06 - 31/12/06	3,606.55	2,400.00	604.93	2,400.00
01/01/2007 - 31/12/2007	01/01/07 - 31/03/07	6,006.55	2,400.00	591.78	591.78
	01/04/07 - 30/06/2007	6,006.55	2,400.00	598.36	1,190.14
	01/07/07 - 30/09/2007	6,006.55	2,400.00	604.93	1,795.07
	01/10/07 - 31/12/07	6,006.55	2,400.00	604.93	2,400.00
01/01/08 - 31/12/08		8,406.55	2,400.00
01/01/09 - 31/12/2009		10,806.55	1,193.45
01/01/10 - 31/12/10		12,000.00

(1) The revaluation recorded in the current period [01/04/06 - 30/06/06] takes effect at 01/04/2006. This has the following consequences:
- the revaluation of the depreciation total at the end of E-1: 3,005.46 x 1.2 =   3,606.55
- the revaluation of the depreciation total for the closed periods of E: 493.15 x 1.2 =   591.78
- the revaluation of the asset gross value at 01/04/2006: 10,000 x 1.2 = 12 000
- the continuing depreciation plan taking into account these revaluated values.

(2) the new charge of 2006 fiscal year equals to: 12,000 x 20% =   2,400.00

(3) The depreciation expense for the current period is:  2,400.00 x (181 days / 365 days) - 591.78 = 598.36
At 30/06/2006, the depreciation total for the closed periods is thus: 591.78 (quarter charge 1 revaluated) + 598.36 (quarter charge 2) = 1,190.14.

Example of negative revaluation

A revaluation is negative when the market value entered is smaller than the net value of the asset, or when a revaluation is performed by applying a coefficient, if this coefficient is smaller than 1.

Period period	Own capit. Reval. variance.  Provision	Own capit. Reval. variance.  Reversal	Balance Reval. variance.		Profit and loss accounts Products	Profit and loss accounts Charges	Balance
			0				0
100	100 (1)		100				0
50	50		150				0
-70		70	80				0
-100		80 (2)	0			20 (2)	-20
-10			0			10	-30
20			0		20 (3)		-10
50	40		40		10		0
30	30		70

(1) The positive revaluation amount is credited as own capital, under the heading Revaluation variances (Provision).
(2) The nevative revaluation amount is credited as own capital, under the heading Revaluation variances (Reversal). The displayed amount is limited to the balance of the revaluation variances. The balance, posted as Charges to the profit and loss account, is stored in the RVADEVCHG field of the EFASREEVAL table.
(3) The positive revaluation amount is posted to the profit and loss account (Revenue) because it compensates for any negative revaluation, previously posted to the profit and loss account.

 This example does not take into account the revaluation reversal transferred to the profit and loss account, and not allocated as the asset is being depreciated. The amount of this reversal corresponds to the difference between the depreciation based on the revalued book value of the asset and the depreciation based on its initial cost.

Example of Accounting free revaluation

- Asset value: 1,000
- Depreciation start date: 01/01/N
- Mode: linear on the Charts of accounts; declining on the Fiscal plan
- Duration: 5 years
- In N: accounting charge of 200 - fiscal charge of 450 - exceptional provision: 250
- In N+1, its net value of 800 is revaluated at 1,040.
- The revaluation variance has a value of 240 (1,040 - 800)
- The accounts depreciation basis of 1,000 is increased by the value of the revaluation variance (240), resulting in a revaluated basis of 1,240.
- The accounts depreciation is calculated from the new net value of 1,040, in residual mode, resulting in an accounts depreciation of 260/year.

Accounts depreciation

Fiscal year	Reval. basis	Total	Net value basis	Reval. basis	Fiscal	NV	Reserve
N	1,000	0	1,000		200	800
N + 1	1,240	200	(800) 1,040	240	260	780	240
N + 2	1,240	460			260	520	240
N + 3	1,240	720			260	260	240
N + 4	1,240	980			260	0	240

Finance depreciation

Fiscal year	Reval. basis	Total	Exceptional reversal	Net value (start)	Fiscal	Net value (end)
N	1,000	0		1,000	450	550
N + 1	1,240 (1)	450	250 (2)	1,040 (3)	468	572
N + 2	1,240	668 (4)		572	257.40	314.60
N + 3	1,240	925.40		314.60	157.30	157.30
N + 4	1,240	1,082.70		157.30	157.30	0

(1) Fiscal basis = accounting basis
(2) Book vs. Tax reversal noticed in N
(3) Fiscal net value = net value
(4) The total N+2 takes into account the Book vs. Tax provision reversal N+1 (450 + 468 - 250 = 668)

Book vs Tax depreciation

Fiscal year	Fiscal year start situation	Provision	Reversal	Fiscal year end situation
N	0	250		250
N + 1	250	208	250 (1)	208
N + 2	208		2.6	205.40
N + 3	205.40		102.70	102.70
N + 4	102.70		102.70	0

(1) Book vs. Tax provision reversal linked to the revaluation

2/ Revaluation cancellation

The cancellation process for the revaluation is only applied to the selected assets that have been subject to a revaluation during the processed period. This results in:

• The re-assignment of the pre-revaluation values (i.e. their values for the previous period) for the following fields updated by the revaluation process:
  
  - Revalued balance sheet value
  - Depreciation total
  - Accounting net value
  - Period start depreciation total
  - Period start impairment loss increase total
  - Period start depreciation balance
  
  Note: the Market value entered during the revaluation processing is kept.
   
• The blanking of the following fields:
  
  - Issue date
  - Appraiser
  - Comment
   
• The resetting of the following field to zero: Period revaluation
  
• The automatic re-selection of the original method if the revaluation has led to a mandatory change in the depreciation method to a residual equivalent method.
  
• To generate a Depreciation cancellation event (FASREEVAL). (The revaluation and revaluation cancellation events have the same contents; only the event type is used to distinguish them).
  (The user can view the events in the Events journal window that can be accessed from the Other info tab of the Fixed assets management function).
  

Batch task

This function can be run in batch mode. The standard task FASRVA is provided for that purpose.

Specific Buttons

Check

This button triggers the application of the revaluation parameters entered to the assets and the display of a control window that is used: Viewing the list of selected assets in a grid. The new values in the revaluated depreciation plan are displayed for each confirmed asset. This list can be updated by deleting the lines corresponding to the assets to be excluded from the process. To identify, by the color display, potential lines with errors along with their corresponding error messages. The assets with errors are not re-evaluated; they are displayed with their original values. To modify, if required, the value of the Coefficientapplied, at the asset level, if the revaluation is carried out by Coefficient or by Index. To enter, at the level of each asset, the Market value, if the re-evaluation is carried out by Market value.     In order to view all asset values more easily and particularly its net value, the user should enter the market values by displaying the control window in record mode. Any modification carried out on an asset must be confirmed using . To cancel the modifications in progress, click the button. Once the manual adjustments are completed, click the  button to close the control window; the system displays again the entry window for parameters, which enables the user either to validate the mass update by clicking , or to abort the update by clicking the button. In the event that a revaluation is canceled, the displayed values are those of the previous period or fiscal year.

Memo

Click this action to save the current settings to a Memo code to be reused later. The memo is linked to your user profile, not to the function or the screen. The STD memo code is associated with the screen and is loaded immediately when you open the function. For more information on the advanced use of the Memo action, refer to the documentation on the General ergonomics of SAFE X3 software.

Recall

Click this action to enter a Memo code to load the settings associated with the code.

Delete Memo

Click this action to delete a Memo code.

Error messages

The only error messages are the generic ones.

Tables used

Refer to documentation Implementation