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Former Member
Feb 24, 2009 at 03:34 AM

Best Practice for Impairment Of Fixed Assets

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Dear friends,

I have seen lots of thread about impairment of fixed assets. However, lots of it have different solutions and some resulted in need to use different depreciation area too.

Since IFRS is so common to all countries nowadays, I believe SAP should have a standard solution for treatment of impairment for fixed assets. Basically, it should affect only depreciation area 01 so that asset history sheet will show all movement of fixed assets in one sheet, show reduced the depreciation calculated IMMEDIATELY (not only in new fiscal year when using unplanned depreciation), and also be able to reverse that impairment accordingly subjected to limitation of earlier impairment value and what taken out via reduced depreciation.

What is the BEST standard practice that all consultants can use as long as that country follow IFRS? Other packages already have a fixed solution but in SAP, we are still disputing which is the right one.

Thanks,

Stephen Siew