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Hi all,
Thank you for your inputs. We received more information from our business. They want to go with the approach of creating sub-assets with different cost centers than the ones on the main asset.
This sub-asset would have an APC value equal to the difference of the Fair Market Value and the original acquisition cost. If this difference is +ve (a step-up asset), the sub-asset would have a +ve APC value, otherwise it would have a -ve APC value (step-down asset).
One outstanding requirement is that they want to see these step-up/step-down assets separately in the ledger. In other words, they want to have different APC and depreciation accounts than the ones on the main asset. Is this possible? I always thought that you cannot have a different account determination on the asset sub-number than the one on the main asset.
If having different accounts is not possible, is there any other way they can differentiate these step-up/step-down assets in the ledger (balance sheet/P&L)?
Thanks,
| | | ---------------Original Message---------------
From: Mat
Sent: Friday, November 19, 2010 12:45 AM
Subject: Step-up assets - Use of asset subnumber
Hi all,
Our client has recently acquired another company. The newly acquired assets would have a NBV that is either more or less than the fair market value. There is a business requirement that this difference in NBV and FMV has to be recorded and depreciated.
What are some available options? Can this difference be treated as an asset & assigned to the main asset as a child (subnumber)?
Thanks |
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