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Former Member
Mar 05, 2009 at 02:58 AM

Impairment transaction to meet US-GAAP - how can I use SAP for it

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Dear Gurus

I've received a requirement from a customer about SAP AA transaction to handle impairment required by US-GAAP.

This is the situation of the customer.

There are assets capitalized across several years which means an asset has APC value of both prior year acquisition and current year acquisition.

By using unplanned depreciation, they have reduced the net book value to 0. So, APC and accumulated depreciation are having same value now.

I understand the APC value should be revaluated to net book value when impairment occurs which is required by US-GAAP. And as the APC should be 0, the accumulated depreciation of ordinary depreciation and unplanned depreciation also should be 0.

I'd like to know how other US companies are handling impairment transaction with SAP.

I've read other documents in this forum but only found a method to reduce Net Book Value and couldn't find a method to revaluate both APC and Depreciation together.

any help will be appreciated, especially from friends who have experience with US-GAAP impairment transaction.

Thanks.

Heeseon

Edited by: Hee Seon Yoo on Mar 5, 2009 3:59 AM