Re: Fixed assets : absence of depreciation and impairment

On Sat, May 14, 2016 at 6:14 PM, Nicolas Couchoud <..hidden..> wrote:

Hi,

I have two questions about fixed assets :
1) Some fixed assets are not subject to depreciation, e.g. financial
assets or trademarks. Of course, it can be implemented by pretending an
asset's salvage value is the same as its purchase value, but having "no
depreciation" as a depreciation method would be clearer.

Since you depreciate an asset class, you could create a class that you never depreciate. This is a good piece of feedback though and it would be fairly easy to implement. I will file a feature request on that.

2) How does one manage impairment of assets ? I still use version 1.3,
where it does not seem to exist. Does it exist in version 1.4 ?

I don't think we have an automatic impairment module. As I read it, impairment is an adjustment to depreciation?

I think you would probably start with the Net Book Value report and then create any off-setting gl entries you need to do but that's a rough guess and it might be a good thing to discuss requirements in greater detail.

Note for French-speaking people : "depreciation" is a false friend :
English | French
-------------+--------------
depreciation | amortissement
impairment | dépréciation

Regards.

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Best Wishes,

Chris Travers

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