In the FI-AA component, acquisition costs are shown separately from depreciation values. Separate accounts are used for acquisition values and value adjustments in FI-AA. This means that depreciation is not deducted from the acquisition cost. Over the entire life of the asset, the system updates the acquisition and production costs separately from the accumulated depreciation. Only changes to the makeup of the asset result in the updating of the acquisition cost. For partial retirements from an asset, the system automatically determines depreciation (value adjustments) up to the point of retirement, and this amount is retired along with the partial asset.

Different types of depreciation and special valuations of assets (for example, interest) result in an asset having various value components. In part, the system calculates these value components automatically, and in part you must enter them yourself.

The system determines the net book value at the end of a year in the following manner:

Net book value at the start of the fiscal year

+/– Transactions affecting APC (for retirements and transfers

corrected by the proportional value adjustments)

+ Write-ups for the year

– Planned depreciation for the year

Transactions affecting APC are:

• Transactions affecting asset values (acquisition, retirement, etc.)
• Investment support measures
• Transferred reserves (deferred gain)
• Revaluation