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IV96178: INITIAL IMPAIRMENT CALCULATION COMPARES FMV VS. FMV INSTEAD OF FMV VS. AMORTIZED COST

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APAR status

  • Closed as fixed if next.

Error description

  • The impairment functionality should start as a comparison
    between the FMV entered by the user in the Review Assumptions
    menu and the current amortized cost basis of the ROU Asset for
    the FLI period selected (ROU Asset value in the FLI for the
    corresponding fiscal period). Currently, TRIRIGA is comparing
    the FMV entered by the user in Review Assumption to the
    previous FMV in TRIRIGA, as stored/displayed in the Accounting
    Summary section on the Accounting tab.
    The impairment should be triggered when the FMV entered by the
    user is less than the ending ROU Asset in the corresponding
    fiscal period.
    Use case to recreate:
    1. Create a lease with Accounting Start and End Dates of 1/1/17
    - 12/31/18
    2. Create a Rent Payment Schedule with the following parameters:
    Monthly frequency
    Current period start date = 01/01/17
    Create 1 schedules
    Rent amount is $120,000/year
    3. Review Assumptions
    4. Activate the Lease
    5. Review Assumptions
    in the "Fair Market Value" field enter $98,222.77
    In the "Fiscal Period" field 2018 - 01
    Expected Result:
    The ROU Asset in the 2018-01 FLI should equal the value entered
    in the FMV field on Review Assumptions and amortized on a SL
    basis to zero over remaining lease term
    Result:
    The ROU asset equals the LL at 2018-01 of $108,222.78
    

Local fix

  • No workaround
    

Problem summary

  • Need to fix the impairment comparison against Amortized
    cost/Asset value for current and new standard.
    The following workflows were modified:
    triAssumptionAuditLog - Synchronous - Set Estimated Fair Market
    Value   > multiple changes
    triAssumptionAuditLog - Synchronous - Set Current Asset Value
      new workflow
    Praveen Modified these workflows for Impairment
    triContract - Subflow - Lease Term - FLIs to Process
    triContract - Subflow - Likely Term - FLIs to Process
    triFiscalLineItem - Synchronous - Likely Term - Update Rent
    Expense after Impairment
    triFiscalLineItem - Synchronous - Lease Term - Update Rent
    Expense after Impairment
    triContract - Subflow - Perform Fiscal Calculations - Calculate
    Impairment Gain/Loss
    

Problem conclusion

  • Currently Initial Impairment calculations now compares with
    existing fair market value.  Change was made  to compare
    against the Amortized Cost.
    This is targeted to the 1h2017 Application/OM release
    

Temporary fix

Comments

APAR Information

  • APAR number

    IV96178

  • Reported component name

    TRI APP PLTFM R

  • Reported component ID

    5725F26RE

  • Reported release

    352

  • Status

    CLOSED FIN

  • PE

    NoPE

  • HIPER

    NoHIPER

  • Special Attention

    NoSpecatt / Xsystem

  • Submitted date

    2017-05-12

  • Closed date

    2017-05-12

  • Last modified date

    2017-05-12

  • APAR is sysrouted FROM one or more of the following:

  • APAR is sysrouted TO one or more of the following:

Modules/Macros

  • 999
    

Fix information

Applicable component levels



Document information

More support for: IBM TRIRIGA Application Platform
IBM TRIRIGA Application Platform Runtime Engine

Software version: 352

Reference #: IV96178

Modified date: 12 May 2017