FA Revaluation

Revaluation Setup and
Calculations in Oracle Assets
Prepared By:
Author: Vaishali Karanth Oracle Fixed Assets Support
Creation Date: 6-Jun-2015
Last Updated:
Control Number: 1
Version:
Copyright (C) 1995 Oracle Corporation
All Rights Reserved
Product Design and Architecture
Contents
Introduction .................................................................................................................................................... 3
2. Revaluation Set ups: ................................................................................................................................ 4
2.1 Set up Revaluation Accounts ................................................................................................................ 4
2.2 Specify Default Revaluation Rules In Book Control ............................................................................ 5
3. Steps for Performing Revaluation .............................................................................................................. 6
4. Restriction to Perform Revaluation ............................................................................................................ 7
5. Restriction on Transaction after Revaluation ............................................................................................. 7
6. Calculation of Revaluation Reserve in Different Scenarios ...................................................................... 7
6.1. Revalue Accumulated Depreciation .................................................................................................... 7
6.2. Revalue YTD & Accumulated Depreciation ....................................................................................... 9
6.3. Revalue only YTD Depreciation ........................................................................................................11
6.4. Retired Revaluation Reserve (Accumulated Depreciation Not Revalued) .........................................13
6.5. Amortizing Revaluation Reserve ........................................................................................................15
6.6. Revalue YTD and Accumulated Depreciation and Amortize Revaluation Reserve ...........................18
6.7. Revaluation of a Fully Reserved Asset and Revalue Accumulated Depreciation ..............................20
6.8. Revaluation of a Fully Reserved Asset ...............................................................................................22
6.9. Revaluation of a Fully Reserved Asset and Amortize the Revaluation Reserve ................................24
6.10. Retirement of a Revalued asset which has Amortize Revaluation Reserve Set to Yes ....................27
6.11. Transfer of a Revalued Asset ............................................................................................................30
6.12. Include Current period Depreciation and Amortize Revaluation Reserve ........................................33
6.13. Revaluation of a Fully Reserved asset with Include Current period Depreciation set to Yes...........36
6.14. Revaluation of a Asset which already has adjustment in the same period ........................................38
6.15. Adjustment on a asset which has revaluation in the same period .....................................................40
6.16. Adjustment on a asset which has revaluation in the same period and Revaluation is already
accounted ...................................................................................................................................................44
6.17. Revaluation of an asset which is already impaired ...........................................................................47
6.18. Revaluation of an asset which is Depreciation on WDV method .....................................................49
7. Migration of Revaluation Reserve .............................................................................................................52
8. Tables Involved / Impacted .......................................................................................................................53
9. Some Important Notes:. .............................................................................................................................54
Introduction
Revaluation of fixed assets is the process of increasing or decreasing their carrying value in case
of major changes in fair market value of the fixed asset. International Financial Reporting
Standards (IFRS) require fixed assets to be initially recorded at cost but they allow two models for
subsequent accounting for fixed assets, namely the cost model and the revaluation model.
Cost Model
In cost model the fixed assets are carried at their historical cost less accumulated depreciation and
accumulated impairment losses. There is no upward adjustment to value due to changing
circumstances.
Example:
ABC. purchased a building worth 200,000 on January 1, 2008. It records the building using the
following journal entry.
Equipment
Cash
200,000
200,000
The building has a useful life of 20 years and the company uses straight line depreciation. Yearly
depreciation is hence 200,000/20 or 10,000. Accumulated depreciation as at December 31, 2010 is
10,000*3 or 30,000 and the carrying amount is 200,000 minus 30,000 which equals 170,000.
We see that the building remains at its historical cost and is periodically depreciated with no
other upward adjustment to value.
Revaluation Model
In revaluation model an asset is initially recorded at cost but subsequently its carrying amount is
increased to account for any appreciation in value. The difference between cost model and
revaluation model is that revaluation model allows both downward and upward adjustment in
value of an asset while cost model allows only downward adjustment due to impairment loss.
Example:
Consider the example of ABC Ltd. as quoted in case of cost model. Assume on December 31, 2010
the company intends to switch to revaluation model and carries out a revaluation exercise which
estimates the fair value of the building to be 190,000 as at December 31, 2010. The carrying
amount at the date is 170,000 and revalued amount is 190,000 so an upward adjustment of 20,000
is required to building account. It is recorded through the following journal entry:
Building
20,000
Revaluation Surplus
20,000
Oracle Assets allows you to periodically adjust the value of your Capitalized assets due to
inflation or deflation, according to rates you enter. This process is known as revaluation.
Oracle Assets multiplies the asset cost by the revaluation rate you enter in the Mass Revaluations
window to determine the adjustment to the Asset cost.
2. Revaluation Set ups:

2.1 Set up Revaluation Accounts
You must set up the following revaluation accounts before you can perform a revaluation:
- Revaluation Reserve & Revaluation Amortization Account for each Asset Category.
- Revaluation Reserve Retired Gain and Loss accounts in the Book Controls window.
Set up Revaluation Reserve

and Amortization Account
Set up Revaluation Reserve and Amortization Account at Category level
Set up Revaluation reserve

Retired Gain & Loss Account
Set up Revaluation Reserve Retired Gain & Loss Account at Book control.
2.2 Specify Default Revaluation Rules In Book Control
Allow revaluation and specify default revaluation rules for a book in the Book Controls window.
Revalue Accumulated Depreciation - If you do not revalue accumulated depreciation,

Oracle Assets transfers the accumulated depreciation to the revaluation reserve account
upon revaluation.
Revalue YTD Depreciation - Check this check box to revalue year-to-date depreciation.
Retire Revaluation Reserve - Check this check box to retire revaluation reserve.
Amortize Revaluation Reserve - Check this check box to allow revaluation reserve to be
amortized in this book.
Revalue Fully Reserved Assets - Check this check box to revalue fully reserved assets.
Maximum Revaluations - Enter the maximum number of times an asset in this book can
be revalued as fully reserved. If you leave this field blank, Oracle Assets does not limit
the number of times you can revalue an asset as fully reserved.
Life Extension Factor - Enter the life extension factor for fully reserved assets in this
book. Oracle Assets multiplies the life extension factor by the asset original life to
determine the asset's new, extended life.
Life Extension Ceiling - The life extension ceiling limits the depreciation adjustment
when revaluing fully reserved assets.
Include Current Period Depreciation Is implemented according to Russian legal
requirements and this check box is available only in R12. When revaluation is done with
"Include current period depreciation flag"
checked system calculates and includes current open period depreciation in revaluation
calculations. Any further transaction in same period will rollback revaluation
3. Steps for Performing Revaluation

The Mass Revaluation process includes the following steps:
Create Mass Revaluation Definition
Preview Revaluation
Run Revaluation
Optionally Review Revaluation
To revalue all assets in a category:
Navigate to the Mass Revaluations window.

Enter the Book for which you want to revalue assets.
Enter a Description of the revaluation definition.
Specify revaluation rules. See: Asset Management In a Highly Inflationary Economy
(Revaluation) Asset User Guide Page 3.31.
Enter the category you want to revalue.
Enter the revaluation percentage rate to revalue your assets. Enter either a positive or
negative number.
Override revaluation rules if necessary.
Choose Preview.
Oracle Assets runs the Mass Revaluation Preview Report so you can preview what effect
this revaluation will have when you perform it. If necessary, update the definition and
run the preview report again.
Attention: You must preview the revaluation definition before you perform it.
Find the revaluation definition using the Mass Transaction Number.

Choose Run. Oracle Assets begins a concurrent process to perform the revaluation.
Review the log file after the request completes.
To revalue an individual asset:

Enter the asset number you want to revalue instead of a category. If you revalue a single asset in
a category which is also being revalued, the rate you enter for the asset overrides the category
rate.
To review the effects of a revaluation:

Find the revaluation definition you want to review.
Choose Review to run the Mass Revaluation Review Report.
Review the log file and report after the request completes.
To copy an existing revaluation definition:

Query the revaluation definition you want to copy.
Choose Special, Copy Definition from the menu.
Specify your rates and override any of the copied information in your new definition.
Save your work.
4. Restriction to Perform Revaluation

Revaluations are not processed for:
In 11i, Revaluation was not allowed on assets added in the current open period. However
that restriction has been lifted in R12 and in R12 you we can revalue assets which are
added in current open period as well.
Fully retired assets
Assets with pending retirements
Group Assets
5. Restriction on Transaction after Revaluation

After revaluation of an asset, we will not be able perform
Amortized adjustment where amortization start date is prior to Revaluation period

Retirement of the asset where retirement date is prior to Revaluation period
Expense / Location transfer with a transfer date prior to Revaluation date
Tips: Since Oracle Assets does not Mass Copy Revaluations when you perform a revaluation in
your corporate Book; also perform it in each tax book associated with that corporate book.
6. Calculation of Revaluation Reserve in Different Scenarios

6.1. Revalue Accumulated Depreciation
You place an asset in service in Aug-14. The asset cost is $1200.00 and the life is 4 months, and
you are using straight-line depreciation. On Oct-14 you revalue the asset using a revaluation rate
of 30%.
Revaluation Rules:
Revalue Accumulated Depreciation = Yes
Revalue YTD Depreciation = No
Amortize Revaluation Reserve = No
Retire Revaluation Reserve = No
The effects of the revaluations are illustrated in the following table:

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200+360=1560.00
300.00
300.00
0
300.00
600.00
0
300.00
600.00
600+180=780.00
0
0
180.00
1560.00
1560.00
390.00
390.00
990.00
1380.00
1170.00
1560.00
180.00
180.00
Reval.
30%
Oct-14
Nov-14
Cost after revaluation = Existing Cost + [Existing Cost x (Revaluation Rate / 100)]= 1200 +
(1200*30%)= 1560
Monthly Depreciation Expense = Oracle Assets bases the new depreciation expense on the
revalued remaining net book value / Remaining Life i.e = (1560 780) / 2 months = 390
YTD Depreciation = Previous YTD depreciation + Oct-14 (current month) Depreciation i.e 600 +
390= 990
Accumulated Depreciation = Existing Accumulated Depreciation + [Existing
Accumulated Depreciation x (Revaluation Rate / 100)] + Depreciation Expense of Oct-14 period=
600 + 600*30%+390=1170
Revaluation Reserve = Existing Revaluation Reserve + Change in Net Book Value. In this Case
there is no existing Revaluation Reserve. So Difference of NBV = (1560-780) - (1200 - 600) = 780 600 = 180.00. In this Case, the revaluation reserve amount i.e 180 remains with the asset until the
asset is retired.
Accounting Entry for the Revaluation Transaction is

Accounting entry
Asset Cost
Debit
Credit
360.00
Depreciation Reserve
180.00
Revaluation Reserve
180.00
Snap shot of FA_Deprn_Summary table
6.2. Revalue YTD & Accumulated Depreciation

of 30%.
Revaluation Rules:
Revalue YTD Depreciation = Yes

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200+360=1560.00
300.00
300.00
180.00
300.00
600.00
300.00
600.00
600+180=780.00
0
0
360.00
1560.00
1560.00
390.00
390.00
1170.00
1560.00
1170.00
1560.00
360.00
360.00
Reval.
30%
Oct-14
Nov-14
(1200*30%)= 1560
Depreciation Expense
a) In this case, since we have revalued YTD depreciation also, the effect of YTD revaluation
will be charged as a depreciation Expense i.e 600*30%= 180
b) Monthly depreciation for Oct-14 will be on remaining net book value / Remaining Life i.e
= (1560 780) / 2 months = 390
So total Depreciation Expense that will be Charged for Oct-14 will be (a + b) = 180 + 390 = 570
YTD Depreciation = Previous YTD depreciation + Depreciation expense Charged in Oct14(current month) i.e 600 + 570= 1170
Accumulated Depreciation = Existing Accumulated Depreciation + [Existing Accumulated
Depreciation x (Revaluation Rate / 100)] + Depreciation Expense of Oct-14 period = 600 + 600*30%
+ 390=1170
Revaluation Reserve = Change in Cost i.e 1560 - 1200 = 360.00. In this Case, the revaluation
reserve amount i.e 360 remains with the asset until the asset is retired.
Accounting entry
Asset Cost
Debit
Credit
360.00
180.00
Revaluation Reserve
360.00
180.00
Snap Shot of FA_Deprn_summary Table
6.3. Revalue only YTD Depreciation

of 30%.
Revaluation Rules:
Revalue Accumulated Depreciation = No

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200+360=1560.00
300.00
300.00
180.00
300.00
600.00
300.00
600.00
0
0
1140.00
1560.00
1560.00
780.00
780.00
1560.00
2340.00
780.00
1560.00
1140.00
1140.00
Reval.
30%
Oct-14
Nov-14
(1200*30%)= 1560
b) Monthly depreciation for Oct-14 will be on Revalued Cost / Remaining Life i.e = 1560 / 2
months = 780
Accumulated Depreciation = In this case accumulated depreciation was not revalued. So the existing
balance of Accumulated depreciation will be transferred to Revaluation reserve. The Accumulated
depreciation balance at the end of Oct-14 will be equal to the Depreciation expense charged in oct-14 period
i.e 780.
Revaluation Reserve = Change in Cost + Depreciation expense during Revaluation + Existing

Reserve at the beginning of Oct-14 = (1560-1200) + 180+600 = 1140
Accounting entry
Debit
Asset Cost
360.00
600.00
180.00
Revaluation Reserve
Credit
1140.00
6.4. Retired Revaluation Reserve (Accumulated Depreciation Not Revalued)

of 30%.
Revaluation Rules:
Retire Revaluation Reserve = Yes

Period
Cost
Deprn. Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200+360=1560.00
1560.00
1560.00
300.00
300.00
0
780.00
780.00
300.00
600.00
0
1380.00
2160.00
300.00
600.00
0
780.00
1560.00
0
0
960.00
960.00
960.00
Reval. 30%
Oct-14
Nov-14
Since we are not amortizing the revaluation reserve, this amount remains in the revaluation
reserve account until you retire the asset. When you retire the asset, Oracle Assets transfers it to
the appropriate revaluation reserve retired account.
(1200*30%)= 1560
revalued cost / Remaining Life i.e = 1560 / 2 months = 780
YTD Depreciation = Previous YTD depreciation + Oct-14 (current month) Depreciation i.e 600 +
780= 1380
Accumulated Depreciation = Since we did not revalue the accumulated depreciation, Oracle Assets
transfers the balance to the revaluation reserve. Accumulated depreciation balance at the end of
Oct-14 will be equal to the total depreciation expense amount charged in Oct-14 i.e 780.
Revaluation Reserve = Accumulated Depreciation at the Beginning of Oct-14 + Change in Cost =
600 + (1560-1200) = 960.00
Accounting entry
Debit
Asset Cost
360.00
600.00
Credit
960.00
Revaluation Reserve
When we retire this asset in Dec-14, the entry will be

Accounting entry
Debit
Credit
1560.00
Asset Cost
1560.00
960.00
Revaluation Reserve Retired

Revaluation Reserve
960.00
6.5. Amortizing Revaluation Reserve

of 30%.
Revaluation Rules:
Amortize Revaluation Reserve = Yes
Retire Revaluation Reserve = Yes

Period
Cost
Deprn.
Expense
YTD
Accum.
Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200+360=1560.
00
1560.00
1560.00
300.00
300.00
0
300.00
600.00
0
300.00
600.00
0
780.00
780.00
1380.00
2160.00
780.00
1560.00
0
0
600+360=960.0
0
480.00
0.00
Reval. 30%
Oct-14
Nov-14
Since you are amortizing the revaluation reserve, Oracle Assets calculates the revaluation
amortization amount for each period using the asset's depreciation method.
(1200*30%)= 1560
revalued cost / Remaining Life i.e = 1560 / 2 months = 780
Reval Amortize
0
480.00
480.00
YTD Depreciation = In this case, we did not revalue YTD depreciation. So YTD depreciation at
the end of Oct-14 (current month) period will be the Previous YTD depreciation + Depreciation
expense amount charged in Oct-14 i.e 600 +780=1380
Oct-14 will be equal to the total depreciation expense amount charged in Oct-14 i.e 780.
Revaluation Reserve = Accumulated Depreciation + Change in Cost i.e 600 + (1560-1200) =
960.00
Accounting entry
Debit
Asset Cost
360.00
600.00
Credit
960.00
Revaluation Reserve
Also, since we have amortized the revaluation reserve, system generates the below entry for the
current period Depreciation journal
Accounting entry
Debit
780.00
Revaluation Reserve
480.00
Credit
780.00
Revaluation Amortization
480.00
When we retire this asset in Dec-14, the entry will be

Accounting entry
Debit
Credit
1560.00
Asset Cost
1560.00
Since Revaluation reserve was amortized, system has charged the whole revaluation reserve.
There was no balance left in revaluation reserve as of Dec-14.
6.6. Revalue YTD and Accumulated Depreciation and Amortize Revaluation Reserve
of 30%.
Revaluation Rules:
Period
Cost
Deprn.
Expense
YTD
Accum.
Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200+360=1560.
00
1560.00
1560.00
300.00
300.00
180.00
300.00
600.00
0
300.00
600.00
0
0
360.00
390.00
390.00
1170.00
1560.00
1170.00
1560.00
180.00
0.00
180.00
180.00
Reval. 30%
Oct-14
Nov-14
Reval
Amortize
(1200*30%)= 1560
Monthly Depreciation Expense
b) Monthly depreciation for Oct-14 will be on remaining net book value / Remaining Life i.e
= (1560 780) / 2 months = 390
YTD Depreciation = YTD depreciation at the end of Oct-14 (current month) period will be the
Previous YTD depreciation + Depreciation expense amount charged in Oct-14 i.e 600 +570=1170
Accumulated Depreciation = Existing Accumulated Depreciation at the beginning of Oct+ [Existing
Accumulated Depreciation x (Revaluation Rate / 100)] + Depreciation Expense of Oct-14 period=

600 + 600*30%+390=1170
Revaluation Reserve = Existing Revaluation Reserve + Change in Cost. In this Case there is no
existing Revaluation Reserve. So Revaluation reserve amount will be equal to change in Cost.
Difference in Cost after Revaluation is = 1560-1200=360
Accounting entry
Debit
Asset Cost
360.00
180.00
Credit
180.00
Revaluation Reserve
360.00
Accounting entry
Debit
390 .00
Revaluation Reserve
180.00
Credit
390.00
180.00
6.7. Revaluation of a Fully Reserved Asset and Revalue Accumulated Depreciation

You place an asset in service in Jan-14. The asset cost is $1200.00 and the life is 4 months, and you
are using straight-line depreciation. On May-14 you revalue the asset using a revaluation rate of
30%.
Revaluation Rules:
Revalue Fully Reserved Assets = Yes

Period
Cost
Deprn. Expense
YTD
Accum. Deprn.
Reval. Reserve
Jan-14
Feb-14
Mar-14
Apr-14
1200.00
1200.00
1200.00
1200.00
1200+360=1560.00
1560.00
1560.00
1560.00
1560.00
1560.00
1560.00
300.00
300.00
300.00
300.00
0
156.00
156.00
156.00
156.00
156.00
156.00
300.00
600.00
900.00
1200.00
300.00
600.00
900.00
1200.00
624.00
780.00
936.00
1092.00
1248.00
1404.00
1560.00
0
0
0
0
936.00
936.00
936.00
936.00
936.00
936.00
936.00
Reval. 30%
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
1356.00
1512.00
1668.00
1824.00
1980.00
2136.00
(1200*30%)= 1560. The life extension factor for this asset is 2.5, so the asset's new life is 2.5 * 4
months = 10 months.
Monthly Depreciation Expense = Monthly depreciation for May-14 will be Revalued Cost /
Revised Life i.e = 1560 / 10 months = 156
YTD Depreciation = YTD depreciation at the end of May-14 period will be the Previous YTD
depreciation at the beginning of May-14 + Depreciation expense amount charged in May-14 i.e
1200+156=1356
Accumulated Depreciation = Oracle Assets revalues the accumulated depreciation using the 30%
revaluation rate. The change in net book value is transferred to the revaluation reserve account.
So Existing accumulated depreciation after revaluation is 1200 + (1200*30%)=1560.
Accumulated depreciation amount at the end of May-14 period is = Accumulated depreciation
proportionate to the life which is already completed + May-14 depreciation Amount i.e 1560 /10
months * 4 months = 624 + 156 = 780.
Revaluation Reserve = Change in Net book value i.e (1560-624)-(1200-1200)=936
Accounting entry
Debit
Asset Cost
360.00
576.00*
Revaluation Reserve
Credit
936.00
*Accumulated depreciation reversed is = 1200 (1560/10*4)= 576.00

Snap Shot of Fa_Deprn_summary Table
6.8. Revaluation of a Fully Reserved Asset

you are using straight-line depreciation. On Dec-14 you revalue the asset using a revaluation rate
of 30%.
Revaluation Rules:
Revalue Fully Reserved Asset= Yes

Period
Cost
Deprn. Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
Oct-14
Nov-14
1200.00
1200.00
1200.00
1200.00
1560.00
1560.00
1560.00
300.00
300.00
300.00
300.00
0
780.00
780.00
300.00
600.00
900.00
1200.00
300.00
600.00
900.00
1200.00
0
780.00
1560.00
0.00
0.00
0.00
0.00
1560.00
1560.00
1560.00
Reval. 30%
Dec-14
Jan-15
1980.00
2760.00
months = 6 months.
Monthly Depreciation Expense = Monthly depreciation for Dec-14 will be Revalued Cost /
Remaining Life i.e = 1560 / 2 months = 780
YTD Depreciation = YTD depreciation at the end of Dec-14 period will be the Previous YTD
depreciation at the beginning of Dec-14 + Depreciation expense amount charged in Dec-14 i.e
1200+780=1980
Dec-14 will be equal to the total depreciation expense amount charged in Dec-14 i.e 780.
Revaluation Reserve = Change in Cost + Existing Reserve = 360 + 1200= 1560
Accounting entry
Debit
Asset Cost
360.00
1200.00
Revaluation Reserve
Credit
1560.00
Snap Shot of Deprn_summary Table
6.9. Revaluation of a Fully Reserved Asset and Amortize the Revaluation Reserve
of 30%.
Revaluation Rules:
Revalue Fully Reserved Asset= Yes

Period
Cost
Deprn. Expense
YTD
Accum.
Deprn.
Reval. Reserve
Reval Amortize
Aug-10
Sep-10
Oct-10
Nov-10
1200.00
1200.00
1560.00
1560.00
1200+360=1560.
00
1560.00
1560.00
300.00
300.00
300.00
300.00
0
300.00
600.00
900.00
1200.00
300.00
600.00
900.00
1200.00
0
0.00
0.00
0.00
0.00
1560.00
1560.00
780.00
780.00
1980.00
2760.00
780.00
1560.00
780.00
0.00
780.00
780.00
Reval. 30%
Dec-10
Jan-11
months = 6 months.
Monthly Depreciation Expense = Monthly depreciation for Dec-10 will be Revalued Cost /
Remaining Life i.e = 1560 / 2 months = 780
YTD Depreciation = YTD depreciation at the end of Dec-10 period will be the Previous YTD
depreciation at the beginning of Dec-10 + Depreciation expense amount charged in Dec-10 i.e
1200+780=1980
Dec-10 will be equal to the total depreciation expense amount charged in Dec-10 i.e 780.
Revaluation Reserve = Change in Cost + Existing Reserve = 360 + 1200= 1560
Accounting entry
Debit
Asset Cost
360.00
1200.00
Credit
1560.00
Revaluation Reserve
Accounting entry
Debit
780.00
Revaluation Reserve
780.00
Credit
780.00
780.00
Snap Shot of Deprn_summary Table
6.10. Retirement of a Revalued asset which has Amortize Revaluation Reserve Set to Yes
of 30%.
Revaluation Rules:

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200+360=1560.00
300.00
300.00
300.00
600.00
300.00
600.00
0
0
960.00
1560.00
780.00
1380.00
780.00
480.00
Reval.
30%
Oct-14
Reval
Amortize
480.00
(1200*30%)= 1560
Depreciation Expense = Monthly depreciation for Oct-14 will be on Revalued Cost / Remaining
Life i.e = 1560 / 2 months = 780
Accumulated Depreciation = In this case accumulated depreciation was not revalued. So the
existing balance of Accumulated depreciation will be transferred to Revaluation reserve. The
Accumulated depreciation balance at the end of Oct-14 will be equal to the Depreciation expense
charged in oct-14 period i.e 780
Revaluation Reserve = Change in Cost + Existing Reserve at the beginning of Oct-14 = (15601200) +600 = 960
Accounting entry
Debit
Asset Cost
360.00
600.00
Credit
960.00
Revaluation Reserve
Accounting entry
Debit
780.00
Revaluation Reserve
480.00
Credit
780.00
480.00
Snap Shot of FA_Deprn_summary Table after revaluation
Now in Nov-14 period, asset was retired with a retirement date of 1st Nov 2014. Then the
accounting entry will be
Accounting entry
Debit
Credit
1560.00
Asset Cost
780.00
NBV Retired
780.00
Since Retire revaluation reserve flag is set to NO, the revaluation reserve will not get reversed
when the asset is retired. The financial inquiry form will still show the Revaluation Reserve
balance
Snap Shot of FA_Deprn_Summary Table after Retirement
6.11. Transfer of a Revalued Asset

of 30%.
Revaluation Rules:

Amortize Revaluation Reserve =Yes

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-04
Sep-14
1200.00
1200.00
1200+360=1560.00
300.00
300.00
300.00
600.00
300.00
600.00
0
0
960.00
1560.00
780.00
1380.00
780.00
480.00
Reval.
30%
Oct-14
Reval
Amortize
480.00
(1200*30%)= 1560
Depreciation Expense = Monthly depreciation for Oct-14 will be on Revalued Cost / Remaining
Life i.e = 1560 / 2 months = 780
Accumulated Depreciation = In this case accumulated depreciation was not revalued. So the
existing balance of Accumulated depreciation will be transferred to Revaluation reserve. The
Accumulated depreciation balance at the end of Oct-14 will be equal to the Depreciation expense
charged in oct-14 period i.e 780
Revaluation Reserve = Change in Cost + Existing Reserve at the beginning of Oct-14 = (15601200) +600 = 960
Accounting entry
Debit
Asset Cost
360.00
600.00
Revaluation Reserve
Credit
960.00
In Nov-14 period, performed the a expense account transfer. When the transfer is performed, the
distribution id 139103 got inactivated and new distribution id 139104 got created.
Accounting entry for the transfer transaction is
Snapshot of Depreciation table
6.12. Include Current period Depreciation and Amortize Revaluation Reserve

of 30%.
Revaluation Rules:
Amortize Revaluation Reserve =Yes
Include Current Period Depreciation= Yes

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200+360=1560.00
300.00
300.00
0
300.00
600.00
0.00
300.00
600.00
0.00
0
0
1260.00
1560.00
1560.00
300.00
1560.00
900.00
2460.00
0.00
1560.00
1260.00
0.00
0.00
1260.00
Reval.
30%
Oct-14
Nov-14
Reval
Amortize
(1200*30%)= 1560
Monthly Depreciation Expense = Since we have set the Include Current Period Depreciation
option to yes, the monthly depreciation expense for Oct-14 period will be based on the cost before
revaluation i.e 1200. So Oct-14 depreciation amount will be 1200 / 4 = 300
Since Nov-14 period is the last period of the asset life, the whole cost (after Revaluation) will be
charged as depreciation expense in this period i.e 1560.
transfers the balance to the revaluation reserve including the current period i.e Oct-14
depreciation expense . Accumulated depreciation balance at the end of Oct-14 will be equal zero.
Revaluation Reserve = Difference in Cost + Total Reserve as of Oct-14 + current period
Depreciation =(1560-1200) + 600 + 300= 1260
Accounting entry
Debit
Asset Cost
360.00
900.00
Credit
1260.00
Revaluation Reserve
Since we have amortized the revaluation reserve, system generates the below entry for the
Accounting entry
Debit
1560.00
Revaluation Reserve
1260.00
Credit
1560.00
1260.00
Snap shot of Deprn_summary table
6.13. Revaluation of a Fully Reserved asset with Include Current period Depreciation set to Yes
of 30% and life extension factor is set to 1.5 months. So the revised life of the asset will be 6
months now.
Revaluation Rules:
Revalue Fully reserved Asset = Yes

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
Oct-14
Nov-14
1200.00
1200.00
1200.00
1200.00
1200+360=1560.00
300.00
300.00
300.00
300.00
0
300.00
600.00
900.00
1200.00
0.00
300.00
600.00
0.00
1200.00
0.00
0.00
0.00
0.00
0.00
1560.00
1560.00
0.00
1200.00
0.00
1560.00
Reval.
30%
Dec-14
Jan-15
1560.00
1560.00
2760.00
1560.00
1560.00
(1200*30%)= 1560.
The life extension factor for this asset is 1.5, so the asset's new life is 1.5 * 4 months = 6 months.
option to yes, the monthly depreciation expense for Dec-14 period will be based on the cost
before revaluation i.e 1200. However since this asset is already fully reserved in Oct-14 period,
there is no life / Netbook value left prior to Revaluation i.e Dec-14. So depreciation amount for
Dec-14 will be 0. However in next period i.e Jan-15 period system will charge the whole revalued
cost as Depreciation expense i.e 1560.
.
the end of Dec-14 (current month) period will be the Previous YTD depreciation + Depreciation
expense amount charged in Dec-14 i.e 1200 +0=1200
Accumulated Depreciation = Oracle Assets transfers the balance to the revaluation reserve.
Accumulated depreciation balance at the end of Dec-14 will be equal to the total depreciation
expense amount charged in Dec-14 i.e 0. In Jan-15 period the whole revalued cost will be charged
as Depreciation expense i.e 1560. So at the end of Jan-15, the accumulated depreciation will be
1560.
Revaluation Reserve = Difference in Cost + Total Reserve as of Dec-14 + current period
Depreciation =(1560-1200) + 1200 + 0= 1560
Accounting entry
Debit
Asset Cost
360.00
1200.00
Revaluation Reserve
Snap shot of Deprn_summary table
Credit
1560.00
6.14. Revaluation of a Asset which already has adjustment in the same period
you are using straight-line depreciation. On Oct-14 you performed a cost adjustment on the asset
and increased the cost of the asset by 200. So accounting entry for adjustment transaction is
In the same period revalue the asset using a revaluation rate of 30%
Revaluation Rules:
Revalue Fully reserved Asset = No

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1400.00
300.00
300.00
100.00
300.00
600.00
700.00
300.00
600.00
700.00
0.00
0.00
0.00
1400+420=1820.00
1820.00
1820.00
0
350.00
455.00
0.00
1050.00
1505.00
0.00
1365.00
1820.00
105.00
105.00
105.00
After Cost
adjustment
Reval. 30%
Oct-14
Nov-14
(1400*30%)= 1820
option to yes, the monthly depreciation expense for Oct-14 period will be based on the cost before
revaluation i.e 1400. So monthly Depreciation for Oct-14 period will be Remaining cost before
revaluation / Remaining Life before revaluation = 1400/4 = 350
Depreciation amount from next month i.e Nov-14 period will be = Revalued cost / Total life =
1820 / 4 = 455.
Accumulated Depreciation = Accumulated Depreciation before Revaluation + (Existing
Accumulated Depreciation at the beginning of Oct + Depreciation Expense due to Cost

adjustment + Depreciation Expense of Oct-14 period)* 30%= (600 + 100+350) + (600 + 100+350) *
30%=1365
Revaluation Reserve = Change in Cost - Change in Accumulated depreciation = (1820 1400)(600 + 100+350) * 30%=105.00
Accounting entry
Asset Cost
Debit
Credit
420.00
315.00
Revaluation Reserve
105.00
Snap shot of Deprn summary table
6.15. Adjustment on a asset which has revaluation in the same period

You place an asset in service in Jun-13. The asset cost is $1200.00 and the life is 4 months, and you
are using straight-line depreciation. On Aug-13, revalue the asset using a revaluation rate of 30%.
Revaluation Rules:

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Jun-13
Jul-13
1200.00
1200.00
1200+360=1560.00
1560.00
300.00
300.00
0
300.00
300.00
600.00
0.00
900.00
300.00
600.00
270.00
1170.00
0.00
0.00
90.00
90.00
Reval. 30%
Aug-13
(1200*30%)= 1560
option to yes, the monthly depreciation expense for Aug-13 period will be based on the cost
before revaluation i.e 1200. So monthly Depreciation for Aug-13 period will be =cost before
revaluation / Life before revaluation = 1200/4 = 300
the end of Aug-13 (current month) period will be the Previous YTD depreciation + Depreciation
expense amount charged in Aug-13 i.e 600 +300=900
Accumulated Depreciation at the beginning of Aug-13 + Depreciation Expense of Aug-13 period)*

30%= (600+300) + (600 +300) * 30%=1170
Revaluation Reserve = Change in Cost - Change in Accumulated depreciation = (1560 1200)(600 +300) * 30%=90
Accounting entry
Asset Cost
Debit
Credit
360.00
270.00
Revaluation Reserve
90.00
Screen shot of transaction history form for the asset is
In the same period, perform a cost adjustment and increase the cost of the asset by 200.
Now, if we go and check the transaction history of the asset, it will just show addition and cost
adjustment transaction.
It is a intended functionality. As per the current functionality when revaluation is done with
"Include current period depreciation flag" checked system calculates and includes current open
period depreciation in revaluation calculations. Any further transaction in same period will
rollback the revaluation internally.
6.16. Adjustment on a asset which has revaluation in the same period and Revaluation is already
accounted
You place an asset in service in Jan-12. The asset cost is $1200.00 and the life is 4 months, and you
are using straight-line depreciation. On Mar-12, revalue the asset using a revaluation rate of 30%.
Revaluation Rules:


Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Jan-12
Feb-12
1200.00
1200.00
1200+360=1560.00
1560.00
300.00
300.00
0
300.00
300.00
600.00
0.00
900.00
300.00
600.00
270.00
1170.00
0.00
0.00
90.00
90.00
Reval. 30%
Mar-12
(1200*30%)= 1560
option to yes, the monthly depreciation expense for Mar-12 period will be based on the cost
before revaluation i.e 1200. So monthly Depreciation for Mar-12 period will be =cost before
revaluation / Life before revaluation = 1200/4 = 300
the end of Mar-12 (current month) period will be the Previous YTD depreciation + Depreciation
expense amount charged in Mar-12 i.e 600 +300=900
Accumulated Depreciation at the beginning of Mar-12 + Depreciation Expense of Mar-12 period)*

30%= (600 + 300) + (600 +300) * 30%=1170
Revaluation Reserve = Change in Cost - Change in Accumulated depreciation = (1560 1200)(600 +300) * 30%=90
Accounting entry
Asset Cost
Debit
Credit
360.00
270.00
Revaluation Reserve
90.00
Now Run create accounting program and process the Revaluation event
In XLA_EVENTS table we can see that revaluation event is already processed
Now we will perform a cost adjustment transaction on the Asset in the same period.
Now if we see the financial inquiry form, we see two revaluation transactions and the cost of the
asset changed from 1760 to 1400 as system has rolled back the revaluation transaction.
In XLA_EVENTS table we see system generated two Rollback events i.e one to rollback the
current period depreciation and other event to rollback the Revaluation.
6.17. Revaluation of an asset which is already impaired

you are using straight-line depreciation. On Oct-14, perform a impairment transaction and with
an impairment loss of 200. The accounting entry for Impairment transaction is
Accounting entry
Impairment Expense
Impairment Reserve
Debit
Credit
200.00
200.00
In Next period i.e Nov-14 period revalue the asset using a revaluation rate of 30%. Accounting
entry for revaluation transaction is
Revaluation Rules:
Include Current Period Depreciation= No

Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
1200.00
1200.00
1200.00
300.00
300.00
0.00
300.00
600.00
0.00
300.00
600.00
0.00
0.00
0.00
0.00
1200.00
1560.00
300.00
0.00
900.00
0.00
900.00
0.00
0.00
1460.00
1560.00
1560.00
2460.00
1560.00
1460.00
After
impairment
Oct-14
Revaluation
30%
Nov-14
(1200*30%)= 1560
Monthly Depreciation Expense = Monthly Depreciation amount will be Revalued cost /
Remaining life. Since Nov-14 is the last period of the assets life the whole revalued cost will be
charged in this period i.e 1560/1= 1560
the end of Nov-14(current month) period will be the Previous YTD depreciation + Depreciation
expense amount charged in Nov-14 i.e 900 +1560=2460
Accumulated Depreciation = In this case we have not revalued the accumulated depreciation. So
the whole accumulated depreciation amount before revalued will be transferred to Revaluation
reserve. So Accumulated depreciation at the end of Nov-14 will be equal to the depreciation
amount charged in Nov-14 period i.e 1560.
Revaluation Reserve = Change in Cost + Existing Accumulated depreciation + Impairment
Reserve = (1560-1200) + 900+200=1460
Accounting entry
Debit
Cost
360.00
Impairment Reserve
200.00
Accumulated depreciation
900.00
Revaluation Reserve
Credit
1460.00
Snap shot of FA_Deprn_summary table is
6.18. Revaluation of an asset which is Depreciation on WDV method

You place an asset in service in Aug-14. The asset cost is $1200.00 and the depreciation rate is
20%. On Oct-14, revalue the asset using a revaluation rate of 30%.
Revaluation Rules:


Period
Cost
Deprn.
Expense
YTD
Accum. Deprn.
Reval. Reserve
Aug-14
Sep-14
Revaluation
30%
Oct-14
Nov-14
1200.00
1200.00
1200.00 +360
20.00
20.00
20.00
40.00
20.00
40.00
12.00
0.00
0.00
348.00
1560.00
1560.00
25.13
25.13
65.13
90.26
77.13
102.26
342.2
336.4
Reval
Amortize
5.8
5.8
(1200*30%)= 1560
Monthly Depreciation Expense = Monthly Depreciation amount will be Revalued net book value
*Rate /12 i.e (1560-(40+12))*20%/ 12 periods = 25.13
the end of Oct-14(current month) period will be the Previous YTD depreciation + Depreciation
expense amount charged in Oct-14 i.e 40 +25.13=65.13
Accumulated Depreciation = Since we have revalued the Accumulated Depreciation, the
accumulated depreciation at the end of Oct-14 period will Accumulated depreciation at the
beginning of Oct-14 + Revalued Accumulated depreciation + Current period Depreciation = 40

+(40*30%)+25.13=77.13
Revaluation Reserve = Change in Cost Change in Accumulated Depreciation = (1560-1200)
(40*30%)=348. Since we have amortized the revaluation reserve, system will charge the
revaluation expense every month i.e 348 * 20%/12 = 5.8
Accounting entry
Cost
Debit
Credit
360.00
Accumulated depreciation
12.00
Revaluation Reserve
348.00
Since we have amortized the revaluation reserve, system generates the below entry for the
Accounting entry
Debit
25.13
Revaluation Reserve
5.8
Credit
25.13
5.8
Snap shot of FA_Deprn_summary table is
7. Migration of Revaluation Reserve

When migrating the assets from a older version to a high version or from a legacy system to
Oracle, if the assets is already revalued in legacy system, along with other details even the
revaluation reserve needs to be migrated to Oracle assets.
Normally data migration is done using
a. Web adi
b. Addition API
c. Inserting the data in FA_mass_additions table
With regards to migrating revaluation reserve, if the data migration is done
a. Using web adi then revaluation reserve needs to be migrated by populating below three
columns.
b.
If the migration is done using Addition API, then the revaluation reserve details needs to
be populated in below arguments under INV_REC_TYPE
REVAL_AMORTIZATION_ BASIS
REVAL_YTD_DEPRN
REVAL_DEPRN_RESERVE
c.
If the data is migrated by directly inserting it in FA_mass_additions table via SQL or a

staging table, then revaluation details needs to be populated under
REVAL_AMROTIZATION_BASIS
REVAL_RESERVE
YTD_REVAL_DEPRN_EXPENSE
When the asset is added via asset work bench also, Revaluation reserve details can be populated
in asset work bench
Even for tax books, the data can be populated using fa_tax_interface tables.
8. Tables Involved / Impacted

Table Name
FA_MASS_REVALUATIONS
FA_MASS_REVALUATION_RULES
FA_MASS_REVAL_REP_ITF
FA_TRANSACTION_HEADERS
FA_ADJUSTMENTS
FA_BOOKS
FA_DEPRN_DETAIL and FA_DEPRN_SUMMARY
FA_BOOK_CONTROLS
FA_CATEGORY_BOOKS
Usage
Shows the details or revaluation transactions
performed irrespective of books
Shows the Detail / Parameters entered for
Revaluation transaction for all the books
Shows the details of changes made after revaluation
like cost before revaluation, cost after revaluation
etc.
Shows the transaction type of revaluation
Shows the accounting entries that is generated by
Revaluation
Shows the cost, adjusted cost etc after revaluation.
Also it shows the Revaluation amortization basis
amount.
These two tables holds the major information about
revaluation like reval reserve amount, revaluation
amortization basis, revaluation expenses etc.
Shows the default Rules defined for revaluation
transaction.
Shows the revaluation accounts which are getting
hit.
9. Some Important Notes:.

Note 202454.1 Fully Reserved Assets are not revalued
Note 178737.1 Not Able to Select Asset Book from the List of Values when Making a Mass
Revaluation
Note 431628.1 Mass Revaluations Preview Report Returns No Data Found
Note 281666.1 Unable To Revalue Fully Reserved Assets Using Flat Rate Depreciation Methods
Note 275223.1 Unable to Change Financial Information On Revalued Fully Reserved Assets
Note 112283.1 Mass Revaluation Preview Report ends with Signal 11
Note 270434.1 Oracle Assets Troubleshooting Guide for Revaluation

FA Revaluation

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FA Revaluation

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Revaluation Setup and

Calculations in Oracle Assets

2. Revaluation Set ups:

Set up Revaluation Reserve

Set up Revaluation Reserve and Amortization Account at Category level

Set up Revaluation reserve

Revalue Accumulated Depreciation - If you do not revalue accumulated depreciation,

3. Steps for Performing Revaluation

Navigate to the Mass Revaluations window.

Find the revaluation definition using the Mass Transaction Number.

To revalue an individual asset:

Navigate to the Mass Revaluations window.

To copy an existing revaluation definition:

Navigate to the Mass Revaluations window.

4. Restriction to Perform Revaluation

5. Restriction on Transaction after Revaluation

Amortized adjustment where amortization start date is prior to Revaluation period

6. Calculation of Revaluation Reserve in Different Scenarios

The effects of the revaluations are illustrated in the following table:

Accounting Entry for the Revaluation Transaction is

Snap shot of FA_Deprn_Summary table

6.2. Revalue YTD & Accumulated Depreciation

The effects of the revaluations are illustrated in the following table:

Accumulated Depreciation = Existing Accumulated Depreciation + [Existing Accumulated

Snap Shot of FA_Deprn_summary Table

6.3. Revalue only YTD Depreciation

The effects of the revaluations are illustrated in the following table:

Revaluation Reserve = Change in Cost + Depreciation expense during Revaluation + Existing

Snap Shot of FA_Deprn_summary Table

6.4. Retired Revaluation Reserve (Accumulated Depreciation Not Revalued)

The effects of the revaluations are illustrated in the following table:

Snap Shot of FA_Deprn_summary Table

When we retire this asset in Dec-14, the entry will be

Revaluation Reserve Retired

6.5. Amortizing Revaluation Reserve

The effects of the revaluations are illustrated in the following table:

Snap Shot of FA_Deprn_summary Table

When we retire this asset in Dec-14, the entry will be

The effects of the revaluations are illustrated in the following table:

Accumulated Depreciation x (Revaluation Rate / 100)] + Depreciation Expense of Oct-14 period=

Snap Shot of FA_Deprn_summary Table

6.7. Revaluation of a Fully Reserved Asset and Revalue Accumulated Depreciation

The effects of the revaluations are illustrated in the following table:

*Accumulated depreciation reversed is = 1200 (1560/10*4)= 576.00

6.8. Revaluation of a Fully Reserved Asset

The effects of the revaluations are illustrated in the following table:

Snap Shot of Deprn_summary Table

The effects of the revaluations are illustrated in the following table:

Snap Shot of Deprn_summary Table

The effects of the revaluations are illustrated in the following table:

Snap Shot of FA_Deprn_summary Table after revaluation

Snap Shot of FA_Deprn_Summary Table after Retirement

6.11. Transfer of a Revalued Asset

Revalue Accumulated Depreciation = No

The effects of the revaluations are illustrated in the following table:

Accounting entry for the transfer transaction is

Snapshot of Depreciation table

6.12. Include Current period Depreciation and Amortize Revaluation Reserve

The effects of the revaluations are illustrated in the following table:

Snap shot of Deprn_summary table

The effects of the revaluations are illustrated in the following table:

Snap shot of Deprn_summary table

The effects of the revaluations are illustrated in the following table:

Accumulated Depreciation at the beginning of Oct + Depreciation Expense due to Cost

Accumulated depreciation reversed is = 1200 (1560/104)= 576.00