Impact of changing prorate conventions on Depreciation calculation for converted assets
Hi,
Here is the scenatio:
Before 2009, assets in Legacy system had Half year PC
After 2009, assets have Current period PC,
Period of conversion: Sep-09
We will charge all depreciation of 2009 into Sep-09 period and then reverse in GL the balances coming from Legacy system related to 2009 dep,
So we created a prorate convention "X" with half year convention prior to 2009 and during 2009 it has Current period, this way it will default the right remaining life for assets,
and to charge the 2009 dep into sep-09, we passed the assets with an amortization date of 01-01-09,
we tested that, numbers are perfect, now in Oct-09 we have to switch to a new prorate conv "Current period", because at the end of the year, the system will generate the 2010 prorate conv "X" as half year since it will take the first year to default the dates.
Here is the scenatio:
Before 2009, assets in Legacy system had Half year PC
After 2009, assets have Current period PC,
Period of conversion: Sep-09
We will charge all depreciation of 2009 into Sep-09 period and then reverse in GL the balances coming from Legacy system related to 2009 dep,
So we created a prorate convention "X" with half year convention prior to 2009 and during 2009 it has Current period, this way it will default the right remaining life for assets,
and to charge the 2009 dep into sep-09, we passed the assets with an amortization date of 01-01-09,
we tested that, numbers are perfect, now in Oct-09 we have to switch to a new prorate conv "Current period", because at the end of the year, the system will generate the 2010 prorate conv "X" as half year since it will take the first year to default the dates.
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