Case 1: Change in the Economic Situation
Assuming a current account credit of 100,000 DM was granted, but changes in the economic situation have led to a risk amounting to 50,000 DM.
Addition to the IVA in 5/98.
|
IVA fix before run |
50,000 | ||||||
|
IVA posted before run |
0 | ||||||
IVA on rec. |
Write off on receivables |
||||||
|
50,000 |
50,000 |
||||||
|
IVA fix after run |
50,000 | ||||||
|
IVA posted after run |
50,000 | ||||||
Both the following postings are made if the adjustments take place during the current fiscal year.
Adjustment of the IVA, since the credit risk has now increased to 70,000 DM in 9/98
|
IVA fix before run |
70,000 | ||||||
|
IVA posted before run |
50,000 | ||||||
IVA on rec. |
Write off on receivables |
||||||
|
20,000 |
20,000 |
||||||
|
IVA fix after run |
70,000 | ||||||
|
IVA posted after run |
70,000 | ||||||
Adjustment of the IVA, since the credit risk has now decreased to 20,000 DM in 12/98
|
IVA fix before run |
20,000 | ||||||
|
IVA posted before run |
70,000 | ||||||
IVA on rec. |
Write off on receivables |
||||||
50,000 |
50,000 |
||||||
|
IVA fix after run |
20,000 | ||||||
|
IVA posted after run |
20,000 | ||||||
Both the following postings are made if the adjustments take place during a following fiscal year.
Adjustment of the IVA, since the credit risk has now increased to 70,000 DM in 9/99
|
IVA fix before run |
70,000 | ||||||
|
IVA posted before run |
50,000 | ||||||
IVA on rec. |
Write off on receivables |
||||||
|
20,000 |
20,000 |
||||||
|
IVA fix after run |
70,000 | ||||||
|
IVA posted after run |
70,000 | ||||||
Adjustment of the IVA, since the credit risk has now decreased to 20,000 DM in 12/99
|
IVA fix before run |
20,000 | ||||||
|
IVA posted before run |
70,000 | ||||||
IVA on rec. |
Write off on receivables |
||||||
20,000 |
20,000 |
||||||
30,000 |
|||||||
|
Income from reversal IVA |
|||||||
|
30,000 |
|||||||
|
IVA fix after run |
20,000 | ||||||
|
IVA posted after run |
20,000 | ||||||