Define Impairment Procedure

(Under Transaction Manager ® General Settings ® Accounting → Settings for Position Management → Key Date Valuation )

Creating one or more impairment procedures

You can set the following indicators:

- Reset Forex Valuation

- Record Foreign Currency Impairment

- Amortization After Impairment

See also:

Documentation on the IMG activity

Define Position Management Procedure

(Under Transaction Manager ® General Settings ® Accounting → Settings for Position Management )

To be able to record impairments for a position the required impairment procedure must be assigned in the impairment area of the corresponding position management procedure.

Define Update Types and Assign Usages

(Under Transaction Manager ® General Settings ® Accounting → Key Date Valuations → Update Types or under Transaction Manager ® General Settings ® Accounting ® Derived Business Transactions ® Update Types )

Define the required update types and assign them to usages:

Examples:

Update Type

Use

V240 – Clear Impairment (Security)

9002   Key date valuation

V241 – Record Impairment (Security)

V244 – Impairment (Security) – Clear positive OCI items

V245 – Impairment (Security) – Clear negative OCI items

VR240 – Clear Impairment (Security)

VR241 – Record Impairment (Security)

VR244 – Impairment (Security) – Clear positive OCI items

VR245 – Impairment (Security) – Clear negative OCI items

DBT_D027 – Clear impairment (negative)

9001   Derived business transactions

DBT_D028 – Post impairment (negative)

DBT_E016 – Impairment (security) translation

DBT_F015 – Reconciliation: Pos. difference impairment (security)

DBT_F016 – Reconciliation: Neg. difference impairment (security)

DBT_G027 – Currency swap: Clear impairment (security)

DBT_G028 – Currency swap: Post impairment (security)

…

INI_041 – Initialization: Post impairment (security)

9000   Position initialization

….

Assign Update Types for Key Date Valuation

(Under Transaction Manager ® General Settings ® Accounting → Key Date Valuation → Update Types )

In this IMG activity you assign update types for the key date valuation depending on the position management procedure.

You must carry out the assignment of update types for all position management procedures to which you have assigned an impairment procedure.

Assign the update types for the following flows in the Special Valuation due to Impairment area on the Impairment tab page:

‑{}‑‑{}‑- Clear Impairment

- Record Impairment

- Clear Security Write-Up

- Clear Security Write-Down

- Clear Foreign Currency Impairment

- Record Foreign Currency Impairment

- Clear Forex Write-Up

- Clear Forex Write-Down

In the Reset Special Valuation due to Impairment area, you assign the update types to reset the above flows.

Assign Update Types for Derived Business Transactions

(Under Transaction Manager ® General Settings ® Accounting ® Derived Business Transactions ® Update Types )

In this IMG activity you assign update types for the derived business transactions depending on the position management procedure. This means that you must carry out the assignment of update types for all position management procedures to which you have assigned an impairment procedure.

You need to enter update types for impairments on the following tab pages:

- Transfer

‑{}‑ - Pos. Outflows

- Reconciliation flows

- Currency swap

- Intragroup (if you are using the Intragroup Trading function)

Assign Update Types for Initializing Positions

(Under Transaction Manager ® General Settings ® Accounting ® Initialize Positions ® Update Types )

In this IMG activity you assign the update types for all product types in the securities and loans areas for initializing positions in the impairment position component.

Indicate Update Types as Relevant to Posting

(Under Transaction Manager ® General Settings ® Accounting ® Link to Other Accounting Components )

Indicate the update types that are relevant for posting.

Create any new posting specifications that you have not yet used.

Enter the posting specifications here for the update types relevant for posting:

Examples:

Update Type

Posting Specifications

V240 – Clear Impairment (Security)

Position to impairment

V241 – Record Impairment (Security)

Impairment to position

V244 – Impairment (Security) – Clear positive OCI

Unrealized price gains, security to position

V245 – Impairment (Security) – Clear negative OCI

Position to unrealized price losses

DBT_D027 – Clear impairment (negative)

Position to position clearing

DBT_D028 – Post impairment (negative)

Position clearing to position

DBT_G027 – Currency swap: Clear impairment (security)

Position to balance sheet clearing

DBT_G028 – Currency swap: Post impairment (security)

Opening account, parallel VA to position

…..

….