In Japan, impairment of fixed assets is conducted in accordance with No. 6 of Japan GAAP application guidance, where a 2 step method is used. Step 1 is a recognition test of impairment loss, and step 2 is measurement of the impairment loss. Future cash flow that is not discounted is used as a standard against which the carrying amount (or net book value, NBV) is compared. If this future cash flow is not enough to cover the net book value of the asset, then the impairment measurement is required to recognize the journal amount. In step 2 of measuring the amount, the recoverable amount (which is either the value in use or the market value of the asset, whichever is higher) is subtracted from the net book value of the fixed asset to calculate the impairment amount. After impairment, the recoverable amount will be the new net book value of the fixed asset for future depreciation calculation.
- Managing impairment indicators
- Visibility of impairment history and transactions
- Impairment with the 2 step method
- Depreciation calculations after impairment
Update information
This country-specific update is included in Cumulative Update 7 (CU7) for Microsoft Dynamics AX 2012 R2. To apply this country-specific update, install CU7 for Microsoft Dynamics AX 2012 R2.
For more information about CU7 for Microsoft Dynamics AX 2012 R2, click the following article number to view the article in the Microsoft Knowledge Base: 2885603 Cumulative Update 7 for Microsoft Dynamics AX 2012 R2