Fixed Assets

Currency Translator makes a special adjustment when the fixed asset formula is:

Fixed Assets =

Fixed assets (prior period)

 

+ Fixed Capital Investment (FCI)

 

? Retirements

Example:

Item

Deutschemarks

Rate

Dollars

Rate Info

Fixed assets (year 1)

6000

.75

4500

year-end rate (year 1)

FCI (year 2)

700

.72

504

weighted average rate

Retirements (year 2)

(600)

.72

(432)

weighted average rate

Fixed assets (year 2)

6100

.60

3660

year-end rate (year 2)

The fixed assets formula expressed in dollars does not balance, that is, 4500 + 504 - 432 - 3660. Currency Translator adjusts the amount and store the adjustment in Adjustment to Fixed Assets (v2170.4.000).

Following is the adjustment formula:

Adjustment to Fixed Assets =

Fixed Assets

3660

 

- Fixed assets (prior period)

4500

 

- Fixed Capital Investments

504

 

+ Retirements

432

 

Result

- 912