NetAsset - Write-Up

Use Case: Inflation or changes in an asset’s fair-value may require a Write-Up revaluation. Note that write ups are IFRS only and are prohibited under U.S. GAAP.

Prerequisites: Asset revaluations must be entered in NetAsset within the month and prior to month-end depreciation.

STEP BY STEP PROCESS

Navigate to an NetAsset record where the revaluation is to be recorded and click the Revalue button.
On the Asset Revaluation page click the down arrow on the Revaluation Type field and select Write-Up.

Next, update the fields as necessary for the asset revaluation:

Field	Description	Example
Effective Revaluation Date	The start date of the period of the revaluation should take place. Defaults to the first period without a journal entry booked.	03/01/2020
Depreciation Method	Change the method by which the asset will be prospectively depreciated.	Straight Line
Useful Life at In-Service	Adjust to the useful life of the asset to extend or retract the current useful life.	48
Remaining Useful Life	Adjust to the remaining useful life of the asset to extend or retract the current useful life.	36
Residual Value Estimate	Update the residual value estimate to be any number less than the current net book value and greater than or equal to 0.	10,0000
Residual Value Percentage	Update the residual value percentage to be any number between zero and 100 to automatically populated the residual value estimate based off the original net book value.	50%
Write-Up Amount	The amount to write-up the asset by.	5,000
Revaluation Note	Provide a brief description of the basis and adjustments made with the revaluation for subsequent support and reference.	Inflation Adjustment

After double-checking inputs for the revaluation, click Revalue Asset.
You will be navigated back to the asset record where you can refresh until the Processing Status no longer reads Processing Revaluation...
The Effective Revaluation Date Period will be split into two entries, one to record the GL Impact of the Revaluation and one to record the normally scheduled depreciation.

Click on hyperlink to the NetAsset Revaluation Entry to see the adjustment to one of three accounts, The Fixed Asset Account, The Accumulated Depreciation Account, or The Accumulated Impairment Account, based on the Revaluation Settings in the NetAsset Global Settings. The offset will be booked to the Impairment Expense Account.
- Adjust Gross Assets, Increase to Gross; Decrease to Accumulated Depreciation, or Increase to Gross; Decrease to Accumulated Impairment.
  - Debit Asset Type’s “Fixed Asset Account” for the Write Up Amount specified on the Revaluation
  - Credit Asset Type’s “Impairment Expense Account” for the Write Up Amount specified on the Revaluation
- Adjust Accumulated Depreciation
  - Debit Asset Type’s “Accumulated Depreciation Account” or the Write Up Amount specified on the Revaluation
  - Credit Asset Type’s “Impairment Expense Account” for the Write Up Amount specified on the Revaluation
- Adjust Accumulated Impairment
  - Debit Asset Type’s “Accumulated Impairment Account” or the Write Up Amount specified on the Revaluation
  - Credit Asset Type’s “Impairment Expense Account” for the Write Up Amount specified on the Revaluation

A NetAsset Revaluation record will be saved on the Revaluations subtab of the asset to saved historical data before and after the revaluation
Clicking the Edit link will reveal the asset information both before and after the revaluation

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