Fixed Assets - EBS (MOSC)

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Rate Adjustment Factor calculation

edited Jan 22, 2016 9:52AM in Fixed Assets - EBS (MOSC) 6 commentsAnswered ✓

I think that for one of the asset the RAF calculation is wrong. Can someone please help me with calculation?

Here are the details about the asset.

Asset Cost: 2004.58

DPIS: 01-MAY-2014

Life: 5 Yrs

Deprn Method: 200DB

Asset Added in Oracle on 01-Nov-2015 with same date(01-Nov-15) as Amortization Start Date.

Depreciation reserve Used when uploading Asset is 1205.24

System Calculated RAF Value is 0.488890441

Adjusted Cost/NBV is 799.34

Depreciation for Nov-15 period is 39.97

Expected RAF is 0.577778333 & Based on this RAF Expected Depreciation for Nov-15 is 33.81

Used formula for RAF = (Cost - Deprn Reserve ) / Cost = (2004.58-846.37) / 2004.58 = 0.577778333

Deprn Reserve Till 01-Nov-15 = AD for 2014(8 months) + AD for 2015(10 Months) = (2004.58*0.26667/12) *8 + (2004.58*0.29333/12) *10 = 356.37 + 490.00 = 846.37

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