Asset Value Adjustment

An Asset Value Adjustment changes the book value of an asset to a new figure after a revaluation or an impairment review, without buying or selling anything. You enter the current value and the new value; on submit the difference posts, for a write down, as a debit to an impairment or revaluation account and a credit to Accumulated Depreciation, and the depreciation schedule is rebuilt from the new value over the remaining life. A write up reverses the direction and usually credits Revaluation Surplus in equity. In the demo example the chairs written down from Rs 38,000 to Rs 30,000 create an Rs 8,000 impairment. Submitted adjustments lock.

Adjustment = Current asset value - New asset value; future depreciation = New value / Remaining months

1. 01Go to Assets > Asset Value Adjustment > New and pick the asset.
2. 02The current value loads; enter the new asset value, for example Rs 30,000.
3. 03Pick the difference account, Impairment Losses - YFF for a write down.
4. 04Set the posting date and add the valuation report as an attachment.
5. 05Submit. The entry below posts and the Asset Depreciation Schedule is rebuilt.

Create under Assets > Asset Value Adjustment after an impairment review. Submitted adjustments lock.

Write the chairs down from Rs 38,000 to Rs 30,000, an Rs 8,000 impairment.