Parameter MV_ATFMCCM

01. GENERAL DATA

02. DESCRIPTION

This parameter defines the method to calculate indexation in Monthly Calculation of Fixed Assets. To run any of the options configured in this parameter, the parameter MV_CORREC must be set to S (enabled).

The configuration options of parameter MV_ATFMCCM are:

• • F: Fixed Rate – To calculate indexation based on a fixed rate.
  • M: Average Rate – To use an average rate to calculate indexation during the month.
  • V: Monthly Variation – To calculate indexation based on the variation of monthly indexes.
  • A: Inflation Adjustment – To apply indexation based on inflation adjustment.

It is imperative to choose the correct calculation method to make sure that asset values properly reflect economic and monetary variations, in compliance with the accounting policy of the company.

03. OTHER INFORMATION

See below some examples of how to use this parameter:

03.1 F - Fixed Rate: Entered through the parameter MV_VALCORR:

Parameter MV_ATFMCCM = F
MV_VALCORR :=2

Added asset with original value of 10000 and annual depreciation rate of 20%.

The indexation rate is calculated =

In the first monthly calculation, the indexation rate will be ( MV_VALCORR / 100 + 1)
2/100+1 = 1.02
(Original Value + Accrued indexation value + expansion) * indexation rate – (Original Value + Accrued indexation value + expansion)
((10000 + 0 + 0 ) * 1.02 – (1000+0+0) = 200

And the monthly depreciation will be
(Original Value + Accrued indexation value) * monthly depreciation rate /100/12
(10000 + 200) * 20/100/12 = 170

Thus, the MV_VALCORR parameter is successively the indexation rate.

03.2 M - Average Rate: M - Average Rate: Calculated through indexes registered in the table SM2 - Currencies:

Parameter MV_ATFMCCM = M

Added asset with original value of 10000 and annual depreciation rate of 20%.

Suppose the month to correct is March 2012 and we have the following rates 
02/29/2012 1.0000
03/01/2012 1.0250
03/02/2012 1.0506
03/03/2012 1.0769
03/04/2012 1.1038
03/05/2012 1.1314
03/06/2012 1.1597
03/07/2012 1.1887
03/08/2012 1.2184
03/09/2012 1.2489
03/10/2012 1.2801
03/11/2012 1.3121
03/12/2012 1.3449
03/13/2012 1.3785
03/14/2012 1.4130
03/15/2012 1.4483
03/16/2012 1.4845
03/17/2012 1.5216
03/18/2012 1.5597
03/19/2012 1.5987
03/20/2012 1.6386
03/21/2012 1.6796
03/22/2012 1.7216
03/23/2012 1.7646
03/24/2012 1.8087
03/25/2012 1.8539
03/26/2012 1.9003
03/27/2012 1.9478
03/28/2012 1.9965
03/29/2012 2.0464
03/30/2012 2.0976
03/31/2012 2.1500

The average rate at which they vary from one day to the next in this case is 1.025
And this is the rate that will be used for the correction
In the first monthly calculation the correction will be 
(Original Value + Accrued correction value + extension) *( MV_VALCORR / 100 + 1) - (Original Value + Accrued correction value + extension)
((10000 + 0 + 0 ) * 1.025 - (1000+0+0) = 250 
And the monthly depreciation will be 
(10000 + 250) *20/100/12 = 170.84

03.3 V - Monthly Variation: Calculated through the index entered on the last day of previous month and index of the day of the depreciation calculation:

Parameter MV_ATFMCCM = V
Added asset with original value of 10000 and annual depreciation rate of 20%.
Suppose the month to be corrected is March 2012, and we have the following rates:
2/29/2012 1.0000
3/1/2012 1.0250
3/2/2012 1.0506
3/3/2012 1.0769
3/4/2012 1.1038
3/5/2012 1.1314
3/6/2012 1.1597
3/7/2012 1.1887
3/8/2012 1.2184
3/9/2012 1.2489
3/10/2012 1.2801
3/11/2012 1.3121
3/12/2012 1.3449
3/13/2012 1.3785
3/14/2012 1.4130
3/15/2012 1.4483
3/16/2012 1.4845
3/17/2012 1.5216
3/18/2012 1.5597
3/19/2012 1.5987
3/20/2012 1.6386
3/21/2012 1.6796
3/22/2012 1.7216
3/23/2012 1.7646
3/24/2012 1.8087
3/25/2012 1.8539
3/26/2012 1.9003
3/27/2012 1.9478
3/28/2012 1.9965
3/29/2012 2.0464
3/30/2012 2.0976
3/31/2012 2.1500

The rate used would be the rate of the last day of the current month, 2.15 over the rate of the last day of the previous month 1 
2.15/1 = 2.15
And this is the rate that will be used for the correction.

In the first monthly calculation, the correction will be:
(Original Value + Accrued correction value + extension) *( MV_VALCORR / 100 + 1) - (Original Value + Accrued correction value + extension)
((10000 + 0 + 0 ) * 2.15) - (1000+0+0) = 11500 
And the monthly depreciation will be (10000 + 11500) *20/100/12 = 358.33

03.4 A - Inflation adjustment: calculated by means of the index entered on the day of the monthly calculation and on the day the asset is added:

Parameter MV_ATFMCCM = A
Added asset with original value of 10000 and annual depreciation rate of 20%, rate on day of asset inclusion 1.0250
Assuming that the rate on the day of the first monthly calculation is: 2.1500

The rate will be 2.1500 / 1.0250 = 2.09756098
And this is the rate that will be used for the correction.
In the first monthly calculation, the correction will be:
(Original Value + Accrued correction value + extension) *( MV_VALCORR / 100 + 1) - (Original Value + Accrued correction value + extension)
((10000 + 0 + 0 ) * 2.09756098) - (1000+0+0) = 11500 
And the monthly depreciation will be (10000 + 11500) *20/100/12 = 349.60

04. RELATED SUBJECTS

Not Applicable.