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Former Member

International Financial Reporting Standard (FRS) in Fixed Asset Add-on

Hi guys,

I got a question that needs an answer from experts. Regarding the Fixed Asset add-on, as far as my knowledge is concerned, SAP B1 Fixed Asset add-on does not cover IFRS requirements (Prolong Useful Life and Residual Value issues).

How B1 cater these requirements. Is there any work around solution on these matters? How did other partners/consultants deal with these issues?

Hope to hear from you soonest. Cheers!!

Regards,

Izzu

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2 Answers

  • Best Answer
    Sep 07, 2007 at 07:36 AM

    Hi Ahmad,

    <u><i><b>Prolong Usefule Life:</b></i></u>

    <b>Current situation:</b>You're able to change depreciation parameters of an asset, the depreciation start date, total useful life and the depreciation type within the 1st year. Then the depreciation will be recalculated. But it is unable to change the total useful life in the following years.

    <b>Workaround:</b> Transfer the asset to a new asset with a longer useful life. There are some constraints: The transfer day should be the 1st day of a fiscal year.

    <u><i><b>Residual Value issues:</b></i></u>

    <b>Current situation:</b> Residual Value is not directly support in FA. SAP is working the function now, will be available soon in 2005 SP1 patch.

    <b>Workaround:</b> Set the residual value as depreciation limit in depreciation type. You may need to set the specific depreciation limit for the specific asset. Mean while one asset need one depreciation type with specific depreciation value. So it is remended to wait for the patch for this function.

    Regards

    Yatsea

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    Former Member
    Sep 09, 2007 at 08:05 AM

    Thank you. Although not answered satisfactorily it's a good opinion/alternative solution. Thank you.

    regards,

    Izzu

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