Position Components for Adjustments with Impairment - SAP Documentation

Position Components for Adjustments with Impairment

The clearing of the value adjustment is based on the listed acquisition costs (P-GAAP)
The clearing of the value adjustment results from the gains and losses value adjustments:

Clearing value adjustment = clearing gains value adjustment + clearing losses value adjustment

Caution
A clearing of gains and losses value adjustments can be both positive and negative.

End of the caution.

Rules for calculating the components

The splitting of the value adjustment follows the algorithm below:

	Case 1	Case 2a	Case 2b	Case 3
	VAD > 0			VAD < 0
	ImpV ≤ AC(H-GAAP) < AC(P-GAAP)	AC(H-GAAP) < ImpV <= AC(P-GAAP)		ImpV < AC(P-GAAP) < AC(H-GAAP)
		AC(P-GAAP) - ImpV ≤ VAD losses	AC(P-GAAP) - ImpV > VAD losses
Clearing of position components
VAD Gains	- VAD gains	0	-((AC P-GAAP - ImpV) – VAD losses)	- VAD gains
VAD losses	- VAD losses	- (AC(P-GAAP) – ImpV)	- VAD losses	- VAD losses

Abbreviations:

ImpV	Impairment amount
AC	Amortized costs
D	Ratio (decreasing part of the position)
VAD	Value Adjustment

Condition 1 : The splitting of the value adjustments gains and losses are correct before the impairment process.

Note: this condition is guaranteed via the derived business transactions automatically.
Condition 2: the clearing of OCI (H-GAAP) occurs at the most by the impairment - value.

This represents a change of the clearing of OCI during the impairment valuation.