Fixed Assets - EBS (MOSC)

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Impairment Rollback - Issues with Assets that become Fully Depreciated in Impairment Period

edited Nov 17, 2012 5:53PM in Fixed Assets - EBS (MOSC) 2 commentsAnswered
We defined a Cash Generating Unit and assigned various assets to it. In November we created an Impairment using the CGU. The Impairment worked as expected and was Posted. After Posting it was determined that the incorrect Impairment Loss was used on the original Impairment. To correct this we performed the Impairment Rollback. This appeared to work fine. We then attempted to submit a "corrected" Impairment against the CGU and the results were all over the place.

We found that a number of assets in the CGU would become Fully Depreciated in November. The original Impairment handled this correctly (no actual impairment charge was made to asset) and the Rollback of the Impairment backed out the Depreciation Expense for November that the Impairment calculated. When we run Depreciation for November (without closing) these assets that should become fully depreciated in November dio not show any Depreciation Expense. It appears that the asset has been flagged to indicate that it is fully depreciated even though the Cost and the Reserve do not equal.

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