Asset Impairment Function and Setup

Asset Impairment
Feature in 8.9
Agenda
Terminologies For Asset Impairment

Rule for Impairment Loss
Rule for Impairment Reversal
Setup
CGU definition
On-Line Impairment
CGU Impairment (Batch Process)
On-Line Report
Crystal Report
Page 2
PeopleSoft Proprietary and Confidential
Terminologies For Asset Impairment
An asset is impaired when its carrying amount

exceeds its recoverable amount.
Net Selling Price (NSP): The amount obtainable from the sale of an asset in
a bargained transaction between knowledgeable, willing parties less the
costs of disposal.
Value in use (VIU): Is the present value of estimated future cash flows
expected to arise from the continuing use of an asset, and from its disposal
at the end of its useful life
Recoverable amount: Is the higher value of an asset's Net Selling Price and
its Value In Use.
Allocated Impairment Loss = NBV Recoverable cost
Page 3
Terminologies For Asset Impairment (Continue)
Cash Generating Units (CGU)

If an organization cannot determine
recoverable value for an individual asset, it
must identify the lowest aggregation of assets
that generate largely independent cash flows.
These aggregations of assets are called Cash
Generating Units.
Page 4
Rule for Impairment Loss

If Revaluation NBV for each asset >= Allocated Impair Loss for each asset Then
Revaluation Reversal for each asset = Allocated Impair Loss for each asset;
Impairment Loss for each asset = 0;
Else
Revaluation Reversal for each asset
= Revaluation NBV for each asset;
Impairment Loss for each asset =

Allocated Impair Loss for each asset - Revaluation NBV for each asset;
End
Page 5
Rule for Impairment Reversal

If |Prior Impair Loss| >= |Allocated Impair Loss for each asset| Then
Impairment Loss (I) for Asset = Allocated Impair Loss for each asset;
Impairment Reversal (X) For Asset = 0;
Else
Impairment Loss (I) for Asset = Allocated Impair Loss for each asset;
Impairment Reversal (X) For Asset =
Allocated Impair Loss for each asset - Impairment Loss (I) for Asset;
/* Revalue Reversal for each asset should reverse only prior Impairment Carrying Cost
(NBV). It should also reverse any revaluation reversals associated with the original
impairment*/
If | Impairment Reversal (X) For Asset | > | Prior Reval Reversal for asset | Then
Impairment Reversal (X) For Asset = Prior Reval Reversal for asset;
End
End
Page 6
Setup
Impair Process Flag Setup
Installation Level
Impairment Process & Copy Zero impairment Rows are new for impairment.
Page 7
Setup (Cont)
Impairment Process and Copy Zero impairment

Rows flags will be used in Asset Impairment.
When Impairment Process is turned on in installation
level, the same field will be shown on in Business Unit
definition page, Profile page, Asseand other pages.
When Copy Zero impairment Rows is turned on, after
asset impairment is done for the specified book, zero
impairment will automatically copy to other book to
keep book in sync.
Page 8
Setup (Cont)
Define Cost Types
Two new cost types will be introduced for Asset Impairment. One is for
Impairment Loss, and another is for Impairment Reversal. You can pick any
letter, which make sense to you, as you new cost type. In the demo, I is
chosen for Impairment Loss and X is chosen for Revaluation
Reversal.
Page 9
Setup (Cont)
Create new Accounting Template ID
Page 10
Setup (Cont)
Define Accounting Entry Templates for new cost types.
Page 11
Setup (Cont)
Business Unit Level
Cost Type For Impairment Loss must be selected if either Impairment

Process or Impairment Reversal is checked.
Cost Type For Reval Reversal must be selected if Account Entry Template ID
has Revaluation_SW turned on.
Page 12
Setup (Cont)
Profile Level Create a new profile
Page 13
Setup (Cont)
Auto Run AMIF1000 Flag Setup
The flag Run Transaction Loader Automatically indicates if the transaction
loader AMIF1000 should be automatically invoked after an impairment loss
process or an impairment reversal process is done.
Page 14
CGU Definition
Pick Range of Values
Page 15
CGU Definition (Cont)
Pick Select Detail Values
Page 16
CGU Definition (Cont)

Check Impair All Assets In This CGU
Page 17
Create Assets for Demo

Created 4 assets:
IMP_01:
BU = IMP01, Profile = IMPAIR, Cost = 20,000,
Impair_Flag = Y
IMP_02:
Impair_Flag = Y, DeptID = 10000
IMP_03:
Impair_Flag = Y, DeptID = 12000
IMP_04:
Impair_Flag = N, DeptID = 13000
They will be used through the demo.
Page 18
On-Line Impairment Worksheet
Impairment Reversal CheckBox showing or not depends on the same flag defined
on BU level.
New Search will cleared out all fields.
Click Retrieve, will bring impairment applied search result;
Page 19
On-Line Impairment Worksheet (Cont)

Retrieve Assets For Impairment
All selected assets for impairment must have status complete for both
depreciation and depreciation reporting.
Page 20

Get search results: IMP_01, IMP_02, and IMP_03 all have
IMPAIR_FLG = Y, they are all selected.
Look at IMP_01, NSP = 20158.50, VIU = 17667;

Recoverable = Max(NSP, VIU) = 20158.50;
Total Impairment Loss = NBV Recoverable
= 22650 20158.50= 2491.50;
Since Revaluation (2950) > Total Impairment Loss (2491.50)
So Revaluation Reversal = -(Total Impairment Loss) = - 2491.50;
Impairment Loss = 0
Page 21

Look at IMP_02, NSP = 8781.34, VIU = 7696;
Recoverable = Max(NSP, VIU) = 8781.34;
Total Impairment Loss = NBV Recoverable
= 9866.67 8781.34 = 1085.33;
Since Revaluation (0) < Total Impairment Loss (1085.33)
So Revaluation Reversal = Revaluation = 0;
Impairment Loss = Total Impairment Loss - Revaluation Reversal
= 1085.33 0 = 1085.33
Page 22

Save Impaired Assets
Select Assets to save their impaired data by checking CheckBox in Mark
column or clicking Select All button.
Page 23

Click Mark to Impair button
Click Save, Asset Impairment data with status Impair will be saved
into PS_INTFC_FIN table, and impairment audit tables.
Page 24

Impair BU = Imp01, Book = Corp, CGUID = USCGU_03, Imp_01 isnt
selected because it doesnt belong to USCGU_03; Imp_04 is selected
even though its impair flag is turned off because Impair All Falg is
turned on in this CGU.
Page 25

Impairment Loss
Enter search criteria and impairment information;

Click Calculate button to compute Net Book Value;
Click Calculate Impairment Loss button to compute Total Impairment Loss.
Page 26
CGU Impairment (Batch Process) (Cont)
Click Run;
The batch process will allocate CGU impairment data into each assets, and
store them into PS_INTFC_FIN table. If the Auto Run AMIF1000 is flag
turned on, batch process AMIF1000 will invoke automatically, and store
AM data into AM tables.
Page 27
On-Line Report For Impairment Values

If Impairment Process is checked, it only report Impairment
Loss and impairment reversal.
Page 28
On-Line Report For Impairment Values (Cont)
Page 29
Crystal Reports For Imapirment Values

There are two report process available, one groups by Category,
and another groups by CGU_ID.
Here shows a report group by Category.
Page 30
Crystal Reports For Imapirment Values(Cont)
Crystal Reports For Impairment Values

The report data are picked from Impairment Audit tables.
Page 31

Asset Impairment Function and Setup

Transféré par

Informations du document

Description originale:

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Asset Impairment Function and Setup

Transféré par

Droits d'auteur :

Formats disponibles

Asset Impairment

Terminologies For Asset Impairment

Terminologies For Asset Impairment

An asset is impaired when its carrying amount

Terminologies For Asset Impairment (Continue)

Cash Generating Units (CGU)

Rule for Impairment Loss

Revaluation Reversal for each asset

= Revaluation NBV for each asset;

Impairment Loss for each asset =

Rule for Impairment Reversal

Impair Process Flag Setup

Impairment Process and Copy Zero impairment

Define Accounting Entry Templates for new cost types.

Cost Type For Impairment Loss must be selected if either Impairment

Pick Range of Values

CGU Definition (Cont)

Pick Select Detail Values

CGU Definition (Cont)

Create Assets for Demo

On-Line Impairment Worksheet

On-Line Impairment Worksheet (Cont)

On-Line Impairment Worksheet (Cont)

Look at IMP_01, NSP = 20158.50, VIU = 17667;

On-Line Impairment Worksheet (Cont)

On-Line Impairment Worksheet (Cont)

On-Line Impairment Worksheet (Cont)

On-Line Impairment Worksheet (Cont)

CGU Impairment (Batch Process)

Enter search criteria and impairment information;

CGU Impairment (Batch Process) (Cont)

On-Line Report For Impairment Values

On-Line Report For Impairment Values (Cont)

Crystal Reports For Imapirment Values

Crystal Reports For Imapirment Values(Cont)

Crystal Reports For Impairment Values

Vous aimerez peut-être aussi