Revalue

The Revalue form is where you revalue an asset to change the capital cost or adjust the accumulated depreciation. These changes take effect immediately so you don't need to run the Depreciation Calculation as well. Nominal Ledger adjustments are created and are posted directly to the Nominal Ledger if the Real Time Update of Nominal Ledger feature is used, or as part of the batch update in the N/L Analysis command.

You can only use the command for live assets if there are no transactions for the asset in this period. When you revalue an asset, you can change either the capital cost or the depreciation to date values on the form. You cannot change both at the same time. If you change the capital cost for an asset acquired in this year, the original cost value is also changed. If you change the capital cost for an asset acquired in an earlier year, the original cost value is not changed.

You can change the residual value and insurance value regardless of whether you change the capital cost or the depreciation to date.

Revaluation of an asset acquired this year

Revaluations can be made for an asset added in this year, that is for those assets where the Acquisition Date falls in this year. If you change the capital cost for an asset added in this year, both the original price and capital cost are updated. Revaluations can result in changes to the annual or period depreciation amount.

You can change the capital cost and original cost for assets added to Fixed Assets this year. A Nominal Ledger adjustment is posted for depreciation calculated so far this year.

Nominal Ledger postings

If the Post NL Journal is ticked, the Nominal Ledger is updated in this way:

When the capital cost is reduced, the difference between the old and the new value is credited to the asset's Original Cost account, and the Profit and Loss account in Set Options in the Nominal Ledger is debited.
When the capital cost is increased, the difference between the old and the new value is debited to the asset's Original Cost account, and the Profit and Loss account in Set Options in the Nominal Ledger is credited.

Note: If Fixed Assets is not linked to the Nominal Ledger, the nominal analysis can still be reported so you can make manual postings.

Revaluation of an asset acquired in previous years

Revaluations can be made for an asset acquired in an earlier year, that is for those assets where the Acquisition Date falls in a previous year. If you change the capital cost of a prior year asset, the capital cost is updated and depreciation is zeroised.

You can choose whether the postings are backdated or not. If they are not backdated, the expected life and depreciation start dates of the asset and the annual or period depreciation rate will change. When backdating revaluations, an adjustment is posted in the current period for the previous periods’ depreciation. This will not affect part disposals, but might change the annual or period depreciation rate.

Note: You need to ensure that the Revaluation Reserve account and the Revaluation Expense account are entered in Set Options in Fixed Assets.

Nominal Ledger postings

If the Post NL Journal is ticked, the Nominal Ledger is updated in this way:

If the capital cost is increased, the difference between the old and the new capital costs is debited to the Revaluation Reserve account and the Original Cost account is credited. If the new net book value is greater than the old net book value, the difference for the accumulated depreciation is debited to the Depreciation (to date) account and the Revaluation Reserve account is credited.

If the capital cost is reduced, the difference between the old and the new capital costs is credited to the Revaluation Expense account and the Original Cost account is debited. If the new net book value is less than the old net book value, the difference for the accumulated depreciation is credited to the Depreciation (to date) account and the Revaluation Reserve account is debited.

Note: If Fixed Assets is not linked to the Nominal Ledger, the nominal analysis can still be reported so you can make manual postings.

Depreciation To Date adjustment (any asset)

A depreciation to date adjustment can be made on either an asset added in this year asset or added in a previous year. For current year assets, an adjustment is automatically backdated to the beginning of the year and a depreciation adjustment is posted.

Nominal Ledger postings

If the Post NL Journal is ticked, the Nominal Ledger is updated in this way:

If the depreciation to date is increased, the difference between the old and the new depreciation to date amounts is debited to the Depreciation (this period) account and the Depreciation (to date) account is credited.
If the depreciation to date is reduced, the difference between the old and the new depreciation to date amounts is credited to the Depreciation (this period) account and the Depreciation (to date) account is debited.

Note: If Fixed Assets is not linked to the Nominal Ledger, the nominal analysis can still be reported so you can make manual postings.

General tab

The form displays both the old and the new settings so you can compare them before you click OK to commit the changes. The Old heading shows the current asset settings. You only need to alter the boxes under the New Values heading for the settings that you need to change. The other boxes can be left unchanged.

Box	Description
Capital Cost	The revalued capital cost for the asset. If you change this box, the Depreciation TD value is zeroised and the net book value is recalculated.
Depreciation TD	The new depreciation to date for the asset. Unless you entered a new capital cost value, you can enter a new depreciation value in this box.
Net Book Value	The calculated new net book value using the Capital Cost - Depreciation TD under the New Values heading.
Residual Value	The new residual value. You can enter a new residual value if you are revaluing the asset by changing the capital cost, or if you are changing the depreciation to date for the asset.
Depreciation / Annum	The recalculated depreciation per annum.
Insurance Value	The new insurance value. This is not based on any revised capital cost. If you revalue the asset by changing the capital cost, you must change the insurance value 'by hand' if necessary.
Backdate	Changes made on the form can be backdated to the start of the asset’s life. Assets acquired in this tax year are always backdated to the beginning of the year.
Post NL Journal	If Fixed Assets is linked to the Nominal Ledger, you can post a journal when the revaluation or depreciation adjustment is posted. If you use the Real Time Update of Nominal Ledger feature, and the system date is within the current Nominal Ledger period, the journal is posted straight away.
Comments	Mandatory. The information entered here is displayed on reports in Fixed Assets, for example the Audit Trail and the Amendments Report.
N/L Depreciation A/C	Displayed if you are posting a depreciation adjustment.
N/L Reval. Reserve A/C	Displayed if you are posting an asset revaluation.
Difference	The calculated difference between the old and the new values.

Extended Comments tab

The optional information entered here is displayed on reports in Fixed Assets, for example the Audit Trail and the Amendments Report.