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How do I post a Revaluation and Disposal of an Asset on a Charity?

Article ID
ias-8076
Article Name
How do I post a Revaluation and Disposal of an Asset on a Charity?
Created Date
6th August 2009
Product
IRIS Charity Formats
Problem
How do I post a Revaluation and Disposal of an Asset on a Charity?
Resolution
Example: An asset held within the General (Un-Restricted) Fund has increased in value. In the following year the asset has been disposed of for a gain (Profit). A new Fund will need to be created as a Revalutaion Reserve Fund. Select: Edit | Funds | New Enter the Fund ID, Fund Name and Fund Type (this would match the Fund Type where the Asset is located e.g. Un-Restricted) Postings will then need to be made to the NEW Fund as follows: Select: Posting | Post/Select Account Fund 512-566/5 (Dr) Revaluation 968/5 (Cr) Revaluation When disposing of an asset, it is advised to first post a Transfer between Funds to re-locate the balance of revaluation to the fund where the asset is held, following which a disposal of the asset can be posted. Transfer: Account Fund 512-566/1 (Cr) Revaluation 968/11 (Dr) Revaluation 512-566/1 (Dr) General 966/11 (Cr) General Disposal: Account Fund 512-566/3 (Cr) General 57 (Gain) (Dr) General 512-566/23 (Dr) General 57 (Gain) (Cr) General Proceeds of Disposal: Account Fund 692 (Bank) (Dr) General 57 (Gain) (Cr) General Gain/Loss on Sale of Asset (See ICHA/UCHA Chart): Group Gain = 32 Loss = 46, 69, 86, 107, 137, 156, 187, 207, 227, 247, 267, 287, 307 and 327 Note: The example above would assume that the Asset has NOT been disposed of in the same year of revaluation.

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