Maintaining Untaxed Gains and Unaccepted Amortization 

Use

You need to manually enter the following values, in order for them to appear in columns 13, 14, and 15 of asset reporting form 32.01 (Non-Revaluated Assets) when you run the Asset Report Print Program:

·        Untaxed gains (which will be used for reinvestments)

·        Costs not accepted as a tax expense (the reinvestments, for example)

You have to differentiate between the following three cases:

       1.      You sell an asset and reinvest part of the revenue for acquiring new assets. The system can determine this reinvestment amount in asset reporting form 31.00, column 14. In this case, for the asset you are retiring, you need to enter the year in which you realize the revenue you want to reinvest; this refers to the year you retire the asset. You must also enter the reinvestment amount as the tax-exempt amount.

       2.      You use a reinvestment amount to acquire another asset. For this asset, you need to specify the reinvestment amount as the amount foregone. The program distributes this reinvested value over the useful life of the asset.

       3.      For vehicles, the depreciation amount is limited to maximum acquisition and production costs (APC) of 29,927.87 euros. You can report any APC above this limit as a value that is not accepted for depreciation. The program distributes this value over the useful life of the asset.

Procedure

In Customizing for Financial Accounting (FI), choose Asset Accounting ® Special Valuation ® Revaluation of Fixed Assets ® Settings for Mapas Fiscais Portugal. Select your company code and double-click Manual Entries. Enter the acquisition year of the asset in the Fiscal Year field, asset, and sub-number, and make the following entries:

Field	Entry	Report Column and Corresponding Article
Year	Year in which you realize reinvested gains for the asset or the year in which you reinvested that amount	13 (No. 6, Art. 44)
Tax-exempt amount	Untaxed difference between gains and depreciation intended for reinvestment – the system can determine this value if you use asset reporting form 31.00, column 14.	14 (No. 1, Art. 44)
Amount foregone	Non-deductible costs not accepted as a tax expense, such as the reinvestment amount or amount above the APC limit	15 (No. 1, Art. 32)
Amt not reinvested	Leave blank	–

Examples

The following examples illustrate the relationship between the Customizing settings and the output of the asset reporting forms.

Consider the following data for asset 1: acquisition value of 4000 euros, depreciation amount of 2400 euros at the time of retirement in the year 2000, and revenue of 2000 euros. The inflation coefficient is 1.07. You reinvest the value calculated in asset reporting form 31.00, column 14 in a new asset, asset 2. The program divides the amount foregone (the reinvested amount) of asset 2 by the asset’s useful life and distributes it over the period. Asset 3 is a vehicle, acquired in 1999, APC of 31,927.87 euros, and a useful life of four years. The program automatically calculates the amount above the depreciation/APC limit, and distributes this value over the useful life as nondeductible costs.

The output of asset reporting form 31.00 for asset 1 looks like this:

Column	2	4	5	6	8	9	10	11	12	14
Value	2000	4000	4000	2400	400	–	2400	1.07	1712	288

If you choose to reinvest the amount in column 14, you make the following Customizing settings:

Fiscal year	Asset	Year	Tax-exempt amount	Amount foregone
1997	1	2000	288	blank
2000	2	blank	blank	288

The output of asset reporting form 32.01/32.02 looks like this:

Report year	Asset	Column
		13	14	15
1999	3	blank	blank	500
2000 *	1 *	2000 *	288 *	blank *
	2	2000	288	72
	3	blank	blank	500
2001	2	2000	288	72
	3	blank	blank	500
2002	2	2000	288	72
	3	blank	blank	500
2003	2	2000	288	72
2004	No output for assets 1, 2, or 3

* This row would only appear if ABAT (assets being returned) was selected on the program selection screen.

The above case example represents the standard case, in which you only need to make one Customizing entry for each asset.

Assume, however, that the useful life of an existing asset changes. Using the example above, the useful life of asset 2 is changed from 4 to 5 years in the year 2002. You have to know which values for the assets were already reported in the previous asset reporting forms. In this example for asset 2, the previously reported amount foregone in 2000 and 2001 was 2 years x 72 euros = 144 euros. The remainder of the amount foregone to be reported is 288 euros – 144 euros = 144 euros. This amount must be distributed over three years, making it 48 euros per year.

The program does not access the historical data, meaning it now calculates the annual amount foregone as 288 euros / 5 years = 57.60 euros. For it to access the correct value of 48 euros, you have to enter correction values of 48 euros - 57.60 euros = -9.60 euros in Customizing for the following years:

Fiscal year	Asset	Year	Tax-exempt amount	Amount foregone
2000	2	blank	blank	288
2002	2	blank	blank	-9.6
2003	2	blank	blank	-9.6
2004	2	blank	blank	-9.6

This would result in the following output data for asset reporting form 32.01/32.02:

Report year	Asset	Column
		13	14	15
2002	2	2000	288	48
2003	2	2000	288	48
2004	2	2000	288	48

If you want to reprint “historical” asset reporting forms, for example for 2000 and 2001 in the case above, you would have to manually change the Customizing entries. With the current useful life of five years, the program calculates the annual amount foregone as 288 euros / 5 years = 57.60 euros. For the program to correctly print the original value of 72 euros for 2000 and 2001, you have to make the following additional entries:

Fiscal year	Asset	Year	Tax-exempt amount	Amount foregone
1999	2	blank	blank	14.4
2000	2	blank	blank	288
2001	2	blank	blank	14.4
2002	2	blank	blank	-9.6
2003	2	blank	blank	-9.6
2004	2	blank	blank	-9.6

The entry above for the year 1999 is what you need to enter if you want to correct the value reported in the acquisition year. If you want to have a value added to the value in the acquisition year, make an entry for the year prior to the acquisition year.

The output for asset reporting form 32.01/32.02 looks like this:

Report year	Asset	Column			Remark
		13	14	15
2000	2	2000	288	72	Value of the report printed in 2000
2001	2	2000	288	72	Value of the report printed in 2001
2002	2	2000	288	48	–
2003	2	2000	288	48	–
2004	2	2000	288	48	–