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Revalued Asset Retirements Report

This report shows asset retirements revalued according to a price index. Use this report to report gains and losses in accordance with Australian tax law. The report only selects assets placed in service after September 20, 1985. The report sorts your assets by balancing segment, asset account, and asset number and prints totals for each asset account and balancing segment.

If you want to actually revalue the cost of your assets in your books, use Mass Revaluation.

You must enter a Book and From/To Period range when you request this report.

Selected Headings

Actual Cost: The retired cost of the asset before applying the price index. The actual cost does not include removal costs.

Recoverable Cost: The retired recoverable cost of the asset before applying the price index.

Index Factor: The index factor as the price index rate valid at the time of retirement divided by the index rate valid at the date placed in service.

In accordance with Australian tax law, if the ratio of price indexes is less than one, or if you held the asset for less than one year, the index factor defaults to one.

Indexed Cost Base: Indexed Cost Base = (Recoverable Cost X Index Factor) + Removal Cost

Reduced Cost Base: The greater of the proceeds of sale or reduced cost base:

However, the reduced cost base can never be greater than the actual cost plus the removal cost.

Ordinary Income: The lesser of depreciation reserve or ordinary income:

where

Or zero if the sale results in a loss.

Gain/Loss: The greater of zero or the capital gain or loss:

or, if the proceeds of sale are less than the reduced cost base:

See Also

Asset Management in a Highly Inflationary Economy

Revaluing Assets

Common Report Parameters

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