Reevalution in global currency - why aren't taxes and fixed assets reevaluated

[mthd]

Dear

We would like to know when we're reevalutating our ledger accounts, why:

1.For the taxes: The accounts are not reevaluated.
2.Why fixed assets aren't reevaluated?

Thank you very much.

Kind regards

[MarNow · Accepted solution]

Hi,

Tax accounts are normally not posted directly to. You would normally not revalue FIAA accounts as well. If you want to change valuation of your fixed asset you would have to do it from FIAA aplication directly. That includes revaluation of your individual assets. Changes in asset values will be posted to FIAA reconciliation accounts directly.

Regards,

Marcin

[mthd · Accepted solution]

Dear

The answer is not clear for us, can you please explain more detailled?

Thank you

[former_member424880]

‎#1 Are the tax accounts maintained in a foreign currency? Are they open item managed? If they are open item managed, are they included in the relevant account determination configuration? If not, do you have the Exchange Rate Difference Key set properly?

‎#2 Please show me the relevant section of FAS52 that describes the revaluation of Fixed Assets. Normally, revaluation is limited to cash and near cash assets and liabilities since (for A/P and A/R) they represent unrealized gains or losses because they can be converted from transactional to functional (company code) currency at any time. Cash, however, is posted as a realized gain or loss because it represents a true picture of the balance currency relative to the functional currency. Long term assets and liabilities are valuated when they are purchased or incurred and do not change since (by definition) their value in the functional currency is fixed.

I am assuming that the Company Code currency IS the functional currency.

[mthd]

‎@Ellen Kerckaert