Oracle Assets allows you to periodically adjust the value of your assets due to inflation or deflation, according to rates you enter. This process is known as revaluation. The rules for revaluation often differ from country to country. Oracle Assets has the flexibility to handle your specific requirements.
Revalue assets to adjust the value of your capitalized assets in a highly inflationary economy. You can revalue all categories in a book, all assets in a category, or individual assets. You can revalue all assets using the Mass Revaluation process. The Mass Revaluation process does not use price indexes to revalue assets.
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.
Revaluations are not processed for:
- Fully retired assets
- Assets with pending retirements
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.
To process revaluations, revaluation accounts and revaluation rules must be set up. The default revaluation rules that are set up for a book can be overridden when creating a revaluation definition in the Mass Revaluations window.
You will need to consider whether or not to revalue accumulated depreciation. You can revalue fully reserved assets that are depreciating under a life-based method. If you choose to revalue fully reserved assets, you would need to enter a life extension factor to extend the asset life. To revalue a retired asset, you would need to first reinstate it. You can also revalue CIP assets, but only for a tax book. A ceiling can be set to prevent revaluation above the fair market value.
To assist in these, and other revaluation considerations and setups, there is a new white paper available. In addition to setup steps, this white paper provides the steps for performing revaluations as well as sample calculations for different scenarios. You can review the document to understand how different book control settings might affect the revaluation calculations. What might be expected if you decide to revalue accumulated depreciation? Or, perhaps you only want to revalue year-to-date (YTD) depreciation? Or, what might the revaluation amounts look like if you amortize the revaluation reserve?
The Revaluation in Oracle Assets White Paper can be found in Doc ID 2018027.1.