Impairment of an asset automatically calculates depreciation for the period in which the impairment
Our accountants say that if the impairment is entered in April-09 depreciation should be calculated on the new value (original value less impairment).
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Accountant's Spreadsheet
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Oracle
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NBV at April -08
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462807.05
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462807.05
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April Deprcn on this (30 yr life /12)
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-1285.58
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Impairment
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-328530.02
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-328530.02
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Current NBV
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134277.03
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132991.45
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Deprcn in Year 30 year life (£134k / 360 mths x 12 mths)
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-4475.9
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Oracle Deprcn (£132 / 359 mths x 11 mths [April already calculated])
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-4079.94
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Closing Value
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129801.13
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128911.51
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Per note 470985.1 I tried to change the deprceciation method to flat rate 0% and whilst this ensures the new net book value remains the same as the original value the system then assumes you have calculaulated depreciation for April (albeit 0) so you still cannot calculate it as per our accountants wish