Asset Impairment

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Hi,
We are planning to do asset impairment for which we created a new Depreciation Area 91 and Asset Impairment Key Z1. When we try to impair assets after assigning the new Depreciation Area 91 and the new Key Z1, the values posted in Depreciation Area 91 is not similar to Book Depreciation Area 01 values. We tried to change the useful life of the asset by giving it a value of the remaining useful life(of the original asset) and by changing the depreciation start date.
We tried to impair the asset using Transaction Code ABIF after assigning the Depreciation Area 91 and Key Z1 in the asset master.
What is the correct process to impair an asset? What should be the depreciation start dates for the impaired asset(both for Book Depreciation Area 01 and Area 91)?
What should be the useful life of the impaired asset? Is it the remaining useful life of the original asset?
Any info. would be highly appreciated.
Thanks.
VS

Thanks for your reply..
But it didn't help me dude... Just i wanna know if anyone got this similar requirement. I am writing my requirement clearly again here..
Impairment: The initial impairment occurs when the asset is still in use, but is being reserved for. We need to bring this into 10K report.
For example, The acquisition value of an asset is 1000, Accumulated Depreciation is 300.
When we impaired this asset the transaction should be
DR. Exp account for $700 ( Acquisition amount Acc.Dep.)
CR. Reserve for Impairment $700
Impairment Disposal: This occurs when we dispose of assets previously impaired as above. We need a transaction other than retirements for this and a separate designation on the 10K report.
When we disposed the transaction should be
CR. Cost $1000
DR. Original Dep. $300
Dr. Reserve for impairment $700
I tried by defining some Z transaction types. But it didn't solve my issue. Can anyone please help me on this.
Thanks,
Satya

Similar Messages

How to configure asset impairment ECC6.0

Hi,
Our client is looking to enable asset impairment functionality in SAP. An asset impairment is different from a revaluation. Revaluation occurs when a business adjusts the assets prices from a mark to market perspective. An impairment occurs when the business realizes the assets it possessu2019 are worth more or less then what is declared on their balance sheet. SAP FA has standard transactions for revaluation of assets and allows to determine the GL accounts in transaction (AO90 under revaluation account assignment) but nothing for impairment.
I know there are several options listed on the forum to post an impairment but none provide the end result I am looking for
The closest option I have is using ABAVN with a partial retirement (but the posting is wrong).
The client provided the following example:
Facts:
u2022Fixed asset with original cost of $100
u2022Original useful life of 10 yrs
u2022Straight-line depreciation
u2022Impaired to $50 at end of 2nd year (after $20 of depreciation) expense
u2022No expected change in useful life
The related posting must be:
-50 cr. FA acquis
20 dr. Acc. Depr.
30 dr. impr loss (P&L)
After the impairment posting the depreciable base is 50, original useful life is 10, and remaining useful life is 8.
The asset would continue to depreicate at a rate of 6.25 per year for 8 years.
Has anyone configured this in their system?
Thanks,
Kuldeep

Hi,
Please find detailed information provided by SAP.
Impairment
Prerequisites
● If you are using the new depreciation calculation, you have activated the FIN EA-APPL add-on.
● You have created the following new transaction types:
○ Transaction type for impairment according to IAS36 (debit) for current year (transaction type group A2)
○ Transaction type for impairment according to IAS36 (debit) for prior year (transaction type group A1)
○ Transaction type for impairment according to IAS36 (credit) for current year (transaction type group A2)
○ Transaction type for impairment according to IAS36 (credit) for prior year (transaction type group A1)
● You create the transaction types in Customizing:
○ For new General Ledger Accounting under Financial Accounting (New) ® Asset Accounting ® Special Valuation® Revaluation of Fixed Assets ® Revaluation for the Balance Sheet ® Define Transaction Types for Revaluation
● For each depreciation area, you have specified that impairments can be posted both as revaluation of acquisition and production costs and as depreciation revaluation:
○ For new General Ledger Accounting under Financial Accounting (New) ® Asset Accounting ® Special Valuation® Revaluation of Fixed Assets ® Revaluation for the Balance Sheet ® Determine Depreciation Areas
● If you want to perform different impairment postings depending on different accounting principles, then you have restricted the transaction types to depreciation areas that use the same accounting principles:
○ For new General Ledger Accounting under Financial Accounting (New) ® Asset Accounting ® Special Valuation® Revaluation of Fixed Assets ® Revaluation for the Balance Sheet ® Define Transaction Types for Revaluation ®Limit Transaction Types to Depreciation Areas
● For posting impairments in the general ledger, you specified for each depreciation area that revaluation is taken into account during the depreciation posting run:
○ For new General Ledger Accounting under Financial Accounting (New) ® Asset Accounting ® Integration with General Ledger Accounting ® Post Depreciation to General Ledger Accounting ® Specify Intervals and Posting Rules.
Process Flow
1. You use the asset list to create a worklist containing the relevant assets. From the SAP Easy Access screen, choose Accounting ® Financial Accounting ® Fixed Assets ®Environment ® Worklist ® Generate. ChooseImpairment Posting as the task for the worklist.
2. You specify how the system should post the impairment:
○ As negative revaluation of the acquisition and production costs to reduce the acquisition value (standard setting)
○ As depreciation revaluation, that is, as an increase in the amount of accumulated depreciation
3. You specify the transaction types that the system uses to generate the impairment postings for the current year and the previous year.
4. You specify how the system should distribute the impairment amount to the individual assets. You have the following options:
○ Distribution of the impairment amount dependent on the net book value
The system distributes the total amount of the impairment proportionally based on the net book value of the individual assets.
○ Customer-specific distribution of the impairment amount
The system distributes the total amount of the impairment based on your customer-specific specifications that you define using the Business Add-In (BAdI) BAdI for Distribution of Impairments (FIAA_IMPAIRMENT_DISTR_CUST). You can also use this BAdI to import an external file in which you have specified the impairment amounts at the level of the individual assets.
○ Distribution of the impairment amount to a net book value of zero
Regards

Process for Impairment of asset

Hi,
Please expalin me the process for impairment of asset. my client want to perform impairment process for one of the assets.
Thanks&Regards,
Bhaskar Suruvu

Hi,
In some countries, it is legally required that companies calculate depreciation after asset impairment. To do this, you have to use specific depreciation rates and base values that are contained in a special formula. The localization of the New Depreciation Engine for these countries implements this formula and enables you to calculate asset depreciation after impairment postings have been made, in accordance with the requirements. The following depreciation keys are delivered for this purpose:
Depreciation Key                                                                                Description
IDB                                                         Declining balance method for impairment with 5% scrap value
IDM                                                        Declining balance method for impairment with 0% scrap value
ILI                                                          Straight-line method for impairment with 0% scrap value
ILT                                                         Straight-line method for impairment with 5% scrap value
Features: Each depreciation key calculates depreciation using a specific formula, as follows:
●     Depreciation key IDB
Depreciation = Book value after impairment * Rate
where Rate is calculated as: 1 - (( Remaining Value / Book value after impairment )1/Remining useful life).
Depreciation is calculated in the following years based on the net book value of an asset.
●     Depreciation key IDM
Depreciation in the year of impairment = Book value after impairment * Rate * 10/9
where Rate is calculated as: 1 u2013 0.11/Remining useful life.
Depreciation in the following years = Remaining depreciable value * Rate * 10/9
where Remaining depreciable value is calculated as: book value after impairment * ( 1 u2013 Rate ) past years.
●     Depreciation key ILI
Depreciation = Book value after impairment * 1 / n
where n is remaining useful life.
●     Depreciation key ILT
Depreciation = ( Book value after impairment u2013 remaining value ) * 1 / n
where n is remaining useful life.
Hope this helps.
Rgds
Manish

Asset Transfer ABUMN - Depreciation Start Date

We have a problem with when Depreciation begins for an Asset as below:
The Business has transferred Asset A to Asset B via TCode ABUMN.
Asset A deactivated = 17.08.2011
Asset B Asset Value Date = 17.08.2011
Asset B Depn Calculation Start Date = 01.09.2011
When reviewing Depn for Asset B in TCode AW10 u2013 Ordinary Depn will not be posted until the new Financial Year 04.2012.
How is it possible to have Depn post from 01.09.2011 as defined in Depn Calculation Start Date?
Thanks in advanceu2026u2026u2026

Hi Bernhard
We have a bespoke Period Control / Period Control Method. For Transfers as below:
FV     Per.contr.     Year     Mo     Dy     Per     MidMon
Z1     Z0          01     00     009
Z1     Z0          02     00     010
Z1     Z0          03     00     011
Z1     Z0          04     00     012
Z1     Z0          05     00     001
Z1     Z0          06     00     002
Z1     Z0          07     00     003
Z1     Z0          08     00     004
Z1     Z0          09     00     005
Z1     Z0          10     00     006
Z1     Z0          11     00     007
Z1     Z0          12     00     008
Z1     Z0          12     31     009
In the problem scenario, for Asset A, there hashas been an Asset impairment in P3 FY2011 and this reversed in P5 FY2012. I have a feeling this may be the root of the problem, but as yet I haven't been able to confirm........

Impairment in new asset fixed (FI-AA)

We are implementing SAP ECC 6.0 and IFRS scenario. We want posting impairment in a new asset, ABZU Transaction (write-up), in IFRS 60 valuation area. This posting doesnu2019t work because ABZU transaction required accumulate amortization.
How can we posting impairment in new asset.
Which transaction type we must be used?
Net book value positive in area 60 at fiscal year start
Message no. AA647
Asset affected: 000600300021-0001

Dear Sider,
Transaction ABZU is used normally when you forgot to capitalize an asset in a fiscal year that is now closed. Also, there can be a case where depreciation you calculated in the past were too high. You must now correct this error using a write-up in the current fiscal year.
In your case, an impairment has to result in reduction in the book value of the asset and not a write-up.
The impairment can be done using Unplanned depreciation or Manual depreciation.
Once you enter the Unplanned depreciation, it will get posted after you do a regular AFAB depreciation run.
Hope it solves your issue.
Assign points, if useful

Best Practice for Impairment Of Fixed Assets

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

Hi Stephen,
How you set it up is based on your bussiness requirements, (paralel ledgers, currencies,...) In the most cases you have more depreciation area's some are creating posting other ones are statistical.
I think in the most cases you will have a minimum from 3 depreciation areas
01 Local books Real-on that create postins
02 Tax book Based on the local tax rules
10 IFRS Create postings or not
When you use IFRS you have to think about the transaction AR29N - Post Revaluation and New Valuation (see the help there).
With this transaction you can upload (new) values from am excel file Search on this forum with AR29N, Marcus give some tips about it
You can use idexes to for doing the revaluation

Impairment of Fixed Assets

Hi All,
Can any one help me in understanding what is Impairment of Fixed Assets, As you must be aware, the Institute of Chartered Accountants of India has made it mandatory for all entities to account for impairment of assets. The institute has brought about such requirement vide its Accounting Standard 28 (AS 28).
As my client asking to implement it.
What all additional steps involve in this.
Regards
Shayam

In order to carry out the necessary tasks in the system, you can use the same functions that are used for showing investment support on the liabilities side of the balance sheet (see Special Valuation). These system functions make it possible for you to manage the reduction in value in a separate depreciation area, in which it can be depreciated. Define this depreciation area with the following characteristics (under Valuation):
Post assets in general ledger realtime
Management of positive and negative book values
Is not a derived depreciation area
Area type: "investment support on liabilities side"
No takeover of APC values from another depreciation area
Mandatory takeover of depreciation terms from area 01
If depreciation area 01 uses a depreciation key that depreciates the net book value over the remaining useful life, the value reduction will also be depreciated over the remaining useful life of the asset. In that case, it is not necessary to change the remaining useful life manually.
Periodic posting of depreciation (under: Depreciation ® Post depreciation to the general ledger).
Indicator set for "depreciation area manages investment support" (under Special Valuation ® Investment support).
Transaction Types
You use separate transaction types for posting the value reduction. Define these transaction types in FI-AA Customizing (Special Valuation ® Investment Support ® Check transaction types for investment support measures). The key for these transaction types always begins with capital letter "I" (for example, I01). Please be aware that these transaction types post only to depreciation areas that are defined for managing value reductions.
You can create the value reduction as a "support measure" in FI-AA Customizing (Define investment support measures). If you do, the system automatically creates the necessary transaction type.

Impairement of Assets in R12 Oracle Assets

Dear All,
May i know Impairment of Assets functionality Exists in R12.1.1 Oracle Assets. I found that functionality in 11.5.10.2.
Can any one Help me.
Thanks

Did you mean to say Downward Revaluation which is the opposite of Upward Revaluation?
Since there is a separate Impairment functionality which is aking to UK Local Authority Accounting and this is different to downward revaluation which is a standard functionality.
Thanks and Regards
Manish

Fix Asset - Write Downs Impairment

FA Experts,
Our company is in the process to book an impairment amount to some of our manufacturing assets. Since this is a procedure rarely use I am not too familiar with the configuration process. We have SAP 7.0 does anyone have any information as to where I can find information as the best SAP practice for Impairment? or can anyone point me to the right direction? I have done some research in the SDN but I am not finding detail information that can help me enough as to what to watch out for and how to configure it, reports available etc.
Your help will be greatly appreciated

Here are the steps I took for impairment, basically SAP does not provide an impairment procedure as there are many ways of doing it. We did a REVALUATION of fix assets using tcode ABAW.
Here are the steps you need to configure:
1) FI     SPRO     IMG > Financial Accounting > Asset Accounting > Integration with General Ledger > Post APC Values Periodically to General Ledger > Specify Document Type for Periodic Posting of Asset Values
2) FI     AFAMP     IMG > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Maintain Period Control Methods
3) FI     AFAMS     IMG > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Calculation Methods > Define Multi-Level Methods
4) FI     AFAMA     IMG > Financial Accounting > Asset Accounting > Depreciation > Valuation Methods > Depreciation Key > Maintain Depreciation Key
5) FI     AO90     IMG > Financial Accounting > Asset Accounting > Integration with General Ledger > Assign GL accounts
6) FI     OABW     IMG > Financial Accounting > Asset Accounting > Special Valuation > Revaluation of Fixed Assets > Revaluation for Balance Sheet > Determine Depreciation Areas
7) FI     OAYR     IMG > Financial Accounting > Asset Accounting > Organizational Structures > Specify Intervals and Posting Rules
regards,

Impairment of assets.

Hi SAP FICO Experts,
Can anybody explain about impairement of assets with configuration steps?
Thanks in advance for the same.
Reg.

hi
impairment of assets means causing damage to assets.
try these links
http://help.sap.com/search/highlightContent.jsp
http://help.sap.com/search/highlightContent.jsp

Impairment of assets(product licence)

Hi,
I have a product licence called xyz with a net book value of rs10,000 on the Market Cost Register . I want to fully impair i.e. write down this asset so that the net book value is zero. Just to clarify I want the asset still listed on the register but with a net book value of zero. In order to enable me to do this I need to know:
Please let me know how to do this?
Thanks & Regards,
Prasad

this issue got resolved by changing the depreciation key in the asset master ...
whenever they can execute the next depreciation run, value becomes zero and is asset will display in the relevant report with zero value.

Audit Adjustment in Asset Accounting

one asset which r not in operation & needs impairment. Auditor charge to some more depreciation to asset in the period of June,08. and want to reduce the Book value of the asset. Depreciation Expense Dr and Acc deperciation CR.
The revised book value will be let say 198000 USD & depre. should be charge on this value from July 01, 2008 . we are using the straight line deperc method in the asset.
Kindly advise how we post the unplanned depreciation in the period of june & should start the depreciation on new book value. Depreciation Run already executed for the month of June & July.

Hi,
what is the APC amount of the asset? If it is higher then the net amount, you can post an unplanned depreciation (ABAA) to the asset, which would reflect your expense posting as described.
Further more you can either set the depreciation start date to July 1st or set the shutdown flag until June 30th to stop depreciating the asset.
Regards,
Markus

Question on fixed asset reports

Hello all,
I work in the real estate accounting department of a large retailer. At quarter/year end we are required to prepare a set of workpapers to support the fixed asset ledger and related P&L accounts. Currently, we are using the following reports:
To support asset account activity:
S_ALR_87011967 Asset balances by site
S_ALR_87012050 Asset acquisitions
S_ALR_87012052 Asset retirements
S_ALR_87012054 Intracompany asset transfers
To support P&L account activity:
FBL3N G/L account line items
The problem we are running into is that, for example, impairment losses are processed by retiring all the assets of the company and reacquiring them at the new fair market value. The net difference is the loss on impairment. Unfortunately, it shows up in our reports as a very large retirement followed by a very large acquisition. These need to be netted together on our schedules for the auditors. The problem right now is that we dont have a good detail report to find impairment retirements/acquisitions, for when we select list assets in the retirements or acquisitions report it gives a hierarchical style report, which is almost impossible to export and process in Excel.
So, my question is really twofold. Firstly, is it possible to turn off the hierarchical setting of a retirements or acquisition report when list assets is selected? Ideally, I'd like to see all the same data on a single row.
Secondly, my real dream report would be more of a standard general ledger with a beginning balance, activity, and ending balance for the period that I could use for all my balance sheet and P&L accounts. Ive tried using the FBL3N report for the balance sheet accounts and it works okay, but I havent been able to figure out how to get it to show the transaction types from the fixed asset ledger. I read something in another post that talked about using the BWASL field to show the transaction types, but I wasnt able to locate it in the available fields list. Do I need to do something special when I run the report?
Thank you so much!

Hi Andreas,
Thanks for getting back to me so quickly!
I thought a custom query would probably be best. I'll need to request access to the transaction before I can try it out, but I'm sure I'll have a bunch more questions to bug you with when I do!
Thanks again,
William

The impairment is not recognised in the year of impairment!!!!

Hello Forum,
I make a impairment posting in yera 2007.
But the imaprments posted are accounted in year 2008 only.
Why is the imapirments posted in the year 2007, not recognized in the same year?
How can i configure such scenario?
Please guide me .......
Thanks
GS

Hi,
I think this is not a regular issue,
I think still Sap do not have any solution for it.We need to implement SORP to do the impairment
I am sending some OSS notes regarding SORP solution,
Note 1142467 - SORP - Statement of Recommended Practice
Legal Change in UK
The guidelines of the recommended practices have been published by CIPFA
(The accounting body for public sector). The SORP sets out the proper
accounting practices required for Statements of Accounts, by section 21(2)
of the Local Government Act.
More Terms
SORP - Statement of Recommended Practice
MHCA - Modified Historic Cost Accounting
Cause and Prerequisites
Legal change affecting local authorities. The SORP has guidelines on how
the councils are to value various items on the balance sheet. This request
deals specifically with fixed assets and includes all the relevant
scenarios for revaluing assets upwards and downwards.
Solution
The solution will describe the major tasks and the customizing steps needed
to be compliant with SORP.
Timelines are as follow:
Note release of necessary customizing activities for
ERP2004 for pilot customers: 22 of February
Note release of additional changes in the
system for ERP2004: 29 of February
Release for other versions: 14th of March
Header Data
Release Status: Released for Customer
Released on: 20.02.2008 09:37:45
Priority: Correction with high priority
Category: Legal change
Main Component FI-AA-AA-H Revaluation
Additional Components:
XX-CSC-GB Great Britain
Valid Releases
09.01.2009 Page 2 of 2
Note 1142467 - SORP - Statement of Recommended Practice
Software Component Release From
Release
To Release and Following
SAP_APPL 46C 46C 46C
SAP_APPL 470 470 470
SAP_APPL 500 500 500
SAP_APPL 600 600 600 X
09.01.2009 Page 1 of 3
Note 1156819 - SORP - Statement of Recommended Practice 2006/2007,UK,
FIAA
Note Language: English Version: 8 Validity: Valid from 22.05.2008
this is the second OSS NOTE 156819
Dear Customers,
Please DO NOT implement this note for SORP solution.
Please refer the OSS note 1144500 to implement the SORP solution.
For internal use:
More Terms
To release the CR for UK solution
Cause and Prerequisites
not intended for customer implementation.
Solution
For SORP solution, please refer the note 1144500
Released only for internal purpose.
Purpose: For testing in the 462, release.
Apply this Note and create the following system objects.
Create and activate the following objects:
1. Package
For releases ERP2004(ECC 5.00) and ERP2005(ECC 6.00):
Transaction code: SE80
Package Name : ID-FIAA-UK
Short Description : Asset Accounting localization - UK
Application Component : FI-LOC
Surrounding Package : ID-FI
Software Component : SAP_APPL
For releases 4.6C and 4.7 :
Transaction code: SE80
Package Name : ID-FIAA-UK
Short Description : Asset Accounting localization - UK
Application Component : FI
Surrounding Package : ID-FI
Software Component : SAP_APPL
2. Function Group
Transaction code: SE80
Page 6
Function Group Name : ID_FIAA_UK
09.01.2009 Page 2 of 3
Note 1156819 - SORP - Statement of Recommended Practice 2006/2007,UK,
FIAA
Package : ID-FIAA-UK
3. Data Element
Transaction code: SE11
Data Element : FLG_SORP_MHCA
Short Text : Activate SORP/MCHA Functions
Domain : XFELD
Package Name : ID-FIAA-UK
Field Label Length Field label
Short 10 SORP/MHCA
Medium 18 Activate SORP/MHCA
Long 20 Activate SORP/MHCA
4. Table
Transaction code: SE11
Table Name : IDFIAA_UK_SORP
Short Text : Activate SORP/MCHA Functions
Package : ID-FIAA-UK
Delivery Class : C
Table View Maintenance: Display/Maintenance Allowed
Field Key InitialValues DataElement
MANDT Y Y MANDT
BUKRS Y Y BUKRS
SORP_MHCA - - FLG_SORP_MHCA
Technical Settings
Data Class : APPL2
Size : 0
Buffering : ON (Fully Buffered)
5. Table Maintenance Generator
Transaction code: SE11
1. Open the table IDFIAA_UK_SORP in change mode.
2. Go to Utilities -> Table Maintenance Generator.
3. Create the table maintenance using the "Create" button:
Function group : ID_FIAA_UK
Package : ID-FIAA-UK
Maintenance Type : one step
Note: IMG changes will not be reflected until the Support Pack is
implemented. However, SM30 transaction can be used to maintain this
table, if the SP is not implemented.
6. Install the following correction instruction of this note:
Correction instruction number: 1001810, 1010333 only for 462 release.
Header Data
Release Status: Released for Customer
Released on: 05.06.2008 12:10:20
09.01.2009 Page 3 of 3
Note 1156819 - SORP - Statement of Recommended Practice 2006/2007,UK,
FIAA
Priority: Correction with medium priority
Category: Correction of Legal Function
Main Component XX-CSC-GB Great Britain
Additional Components:
FI-AA Asset Accounting
Valid Releases
Software Component Release From
Release
To Release and Following
SAP_APPL 46C 46C 46C
SAP_APPL 470 470 470
Support Packages
Support Packages Release Package Name
EA-APPL 110 SAPKGPAA28
EA-APPL 200 SAPKGPAB17
SAP_APPL 46C SAPKH46C57
SAP_APPL 46C SAPKH46C58
SAP_APPL 470 SAPKH47031
SAP_APPL 470 SAPKH47032
SAP_APPL 500 SAPKH50020
SAP_APPL 500 SAPKH50021
SAP_APPL 600 SAPKH60015
SAP_APPL 602 SAPKH60205
SAP_APPL 603 SAPKH60304
SAP_APPL 604 SAPKH60401
Correction Instructions
Correction
Instructio
ns
Valid
from
Valid
to
Software
Component
Typ
e
Reference
Correction
Last
Changed
1001810 46C 46C SAP_APPL C P9CK496292 06.05.2008 11:23:51
1018076 46C 46C SAP_APPL C P9CK497712 05.06.2008 13:06:54
*) C Correction, B Pre-Implementation, A Post-Implementation, M Undetermined
To solve this issue we need OSS note 1144500 but still SAP is working on it I think
If I get any solution I will contact you
Thank you
Ravinder

Transfer posting (OASV) issue for the existing Intangible Assets

Hi SAP Experts,
In our system the APC and Acc. Dep. for ord. dep. has maintained the same G/L Account (A090) so due to this in Fin. Statement it shows the Net Book Value. Now, our client wants to migrate to IFRS, as per this it has to show like ( Intangible Assets - Acc. amortization - Acc. Impairment Loss). Now, I have created new account i.e. 'Accumulated Amortization for Intangible Assets A/c and removed the old G/L A/c (the one which is same for both APC and Acc. Dep.). Now, the old G/L has the APC and Acc. Dep. values so I need to transfer the Acc. Dep. from old G/L to New G/L A/c by using OASV (Transfer posting).
If I make the transfer posting like (the both G/L Accounts are Recon. A/cs)*
      Debit Old G/L A/c    - xx,xx,xxx
      Credit New G/L A/c - xx,xx,xxx
Is it any impact on the values (Intangible Assets) Dep. Area wise? Since, APC and Acc. Dep. already posted to old A/c up to this point of time. Another doubt is, while posting the above entry shall I need to switch off (Reset) Recon. A/c for this Intangible Assets? OR without Reset Recon. A/c can I post this transfer posting? Is this correct procedure or other than this is there any other alternative?
we have 9 Dep. Areas out of which 3 Dep. Areas have posting indicator as '1'. In that out of 3 Dep. Areas one Dep. Area namely 'Impairment Loss' is there but there are no positings till now. After config. change it should allow ABIF tr. that we completed already.
Could anyone explain why this 'Investment Support' Dep. Area (Impairment Loss) doesn't allow APC values by default?
Thanks in advance.
Best Regards,
Sri.

Hi Sri,
Let me clarify your points individually.
1) From system the prospective, it does not make any diff in functionality for a tangable asset or an intangable asset.
2) Add the new GL account in the respective account dtermination as a balance sheet account for accum dep. (while adding, the GL account should be as recon account)
3) Please switch off the recon account indicator in the both GL accounts with OAMK.
For Ex: Lets say you have already posted APC value 10000 Dr and Accum dep 2000 Cr to the old GL account, so the net book value will be 8000 Dr.
In this case Please find out the total value of line items (2000 Cr as per the above example) for accum dep, that was already posted to the old GL account.
4) Post a journal voucher through F-02 like
                                                  Old G/L A/c Dr - 2000
                                                                New G/L A/c Cr - 2000
So after passing this entry you will find account balance as 8000 Dr in old GL account and 2000 Cr in new GL account.
5) after passing the above entry you need to switch on the recon account for both the GL accounts
Hope this will help.
Thanks,
Srinu

Asset Impairment

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