We are based in Australia and have been implementing NAV across 20 group companies over the last 12-18 month.
We are having a problem with the Depreciation of Fixed Assets as there are a couple of special rules regarding low value plant (plant with a value of less than $1000)
In the first financial year of depreciation it is depreciated at 18.75% and the rest of the depreciating life it is depreciated at 37.5%, similarly when a plant’s/asset’s book value goes below $1000, it is moved to low value plant and depreciating the remaining value at 37.5%, but NOT adjusting previous years depreciation values.
So how do we get NAV to calculate the depreciation on the book value rather than the acquisition value? When I have tested by changing the depreciation rate on the Asset Card, the depreciation is not correct as it doesn’t use the book value to calculate the depreciation.
I’m sure there are plenty of other Australian companies who has to accommodate this requirement, but our NAV partner, didn’t know of a solution off by heart and said that companies probably just live with the way NAV does it… But that is not really acceptable for auditing and tax purposes.
Hope someone are able to help ASAP as we have quite a few assets to move to low value as of July for our new financial year.