Part 05 - Events and asset accounting

5.1 Choose the correct transaction

These categories describe the application workflows. Document the accounting assessment before entry. In particular, routine maintenance is not automatically a capital addition, and a change in estimate is not a convenient substitute for a prior-period correction.

5.2 Find an event and review its evidence

Navigation: Events > linked event, or an asset's event history.

1. Locate the event using its type, asset barcode, description or date.

2. Open the event detail.

3. Review the effective date and description, then its type-specific financial values.

4. Check who added the event and when.

5. Open supporting-document links.

6. Follow the asset barcode link to review the full asset history.

Date Added records entry into the application. Effective Date determines when the event affects the asset's accounting history. They may be different.

Use Events > Export to download the event data. Most new events begin from the relevant asset's Add New menu. The Events page's Add New menu provides Correction of Error.

5.3 Record an impairment

Navigation: Assets > asset > Add New > Impairment.

1. Confirm the impairment assessment and approved effective date.

2. Enter Effective Date and Description.

3. Enter Recoverable Amount, using the appropriate amount from the approved assessment.

4. Review the displayed Carrying Value, Recoverable Amount and Impairment Value.

5. Attach the assessment and approval evidence.

6. Select Save and review the event and revised asset values.

Example: A carrying value of R100,000 and an approved recoverable amount of R70,000 imply a R30,000 reduction before any other applicable accounting considerations. Enter R70,000 in the Recoverable Amount field, not the R30,000 reduction.

The screen uses the label Recoverable Amount. For non-cash-generating assets, the accounting assessment concerns recoverable service amount under GRAP 21; cash-generating assets use GRAP 26. The input label does not replace that distinction. See Part 14.

For WIP, open the WIP asset and select Actions > Add Impairment, or use the WIP impairment import.

5.4 Reverse an impairment

Navigation: Assets > asset > Add New > Reversal of Impairment, when available.

1. Review the existing impairment and the evidence supporting recovery.

2. Enter the effective date and description.

3. Review the displayed Reversal of impairment limit.

4. Enter the revised Recoverable Amount.

5. Check the calculated reversal against the displayed limit and the approved assessment.

6. Attach evidence, save and inspect the resulting event.

The asset menu shows this option when the asset has qualifying accumulated impairment information. A reversal is not an unrestricted increase to fair value. Do not use it instead of a revaluation. WIP impairment reversals are available through their dedicated import type.

5.5 Record a capital addition or revaluation

Capital addition navigation: Assets > asset > Add New > Capital Addition.

1. Enter the effective date and a description of the expenditure.

2. Enter Addition Amount.

3. Review Carrying Value, Addition Amount and Adjusted Carrying Value.

4. Attach the capitalisation support, select Save and inspect the event.

If the expenditure also changes the expected remaining life, assess whether a separate change in estimate is needed. Do not assume adding expenditure updates all estimates automatically.

Revaluation navigation: Assets > asset > Add New > Revaluation.

1. Confirm the asset's classification uses the revaluation model and that the valuation scope is appropriate.

2. Enter Effective Date and Description.

3. Enter the Gross Fair Value and/or Carrying Amount Fair Value requested for the applicable method.

4. Review Current Carrying Amount, Fair Value and Fair Value Adjustment.

5. Attach the valuation report and approval.

6. Save, inspect the event and reconcile the resulting movements.

Revaluation appears conditionally for assets under the revaluation model. The Add and Edit screens do not use identical value fields. Inspect the populated event and the requested basis carefully before changing an existing revaluation. Under GRAP 17, a class-wide revaluation requirement must be considered even when entries are made asset by asset. See Part 14.

5.6 Dispose of an asset

Navigation: Assets > asset > Add New > Disposal of Asset, or the disposal section's add link.

1. Confirm the asset, approval and actual disposal date.

2. Enter Effective Date and Description.

3. Select Disposal Type from the available choices.

4. Enter Proceeds, including zero where appropriate to the approved transaction.

5. Review Carrying Value, Proceeds and Profit or (Loss).

6. Attach disposal evidence and select Save.

7. Check the disposal event, asset status and disposal reports for the relevant period.

Example: Proceeds of R20,000 against carrying value of R15,000 produce a R5,000 gain before any other relevant disposal adjustments. Do not enter the gain into the Proceeds field.

A disposal preserves the asset's historical record. Deletion removes a record and is unsuitable for documenting a genuine disposal. There is no separate documented partial-disposal form in this interface; obtain guidance for components or partial derecognition.

5.7 Record a change in estimate

Navigation: Assets > asset > Add New > Change in Estimate.

1. Confirm the change reflects new information or a revised expectation.

2. Enter Change in Estimate Description.

3. Select an available Effective Financial Year and review the resulting Effective Date of Change.

4. Select the estimates to change: Remaining Useful Life, Residual Value, Depreciation Method, Depreciation Rate or Remaining Production Units, as applicable.

5. Compare the displayed existing estimate with your approved revised estimate.

6. Complete the fields revealed by the selection. Changing method may require a new rate, remaining life or production-unit estimate.

7. Attach the review evidence, save and inspect the new event and depreciation results.

The new-entry remaining-life field explicitly uses days. Some edit/correction labels refer to years or omit a unit. If the displayed unit or prefilled value is unclear, have support confirm the intended conversion before saving; do not infer it from a different screen.

Accounting context: New estimates generally affect the current and future periods prospectively. Incorrect information that should have been used in an earlier period is assessed as an error under GRAP 3. See Part 14.

5.8 Start a correction of error

Navigation: Assets > asset > Add New > Correction of Error when available, or Events > Add New > Correction of Error.

Before you start: Prepare the error description, affected period, original and corrected information, supporting evidence and approved correction approach. The correction year must follow the period in which the error occurred.

1. Confirm the existing asset where applicable. For an omitted asset, begin from Events and use the relevant omitted-asset category.

2. Check Effective Financial Year of Correction and enter Description.

3. If the form concerns an asset imported at carrying value, choose the applicable pre- or post-DRC-import correction period.

4. Select the correction category from those available: Incorrect at-acquisition data, Incorrect asset acquisition, Subsequent event correction or Asset addition never recognised.

5. Complete the relevant sub-category and revised fields, as explained below.

6. Select Next and complete the follow-on screen rather than assuming the first step completes the correction.

7. Resolve any impacted later events in chronological order; see article 5.9.

8. Review the asset history, financial movements and outstanding alerts.

Incorrect at-acquisition data: Select the affected fields, such as purchase price, available-for-use date, depreciation method, residual value, useful life or depreciation rate. Enter the approved corrected values in the requested units.

Incorrect asset acquisition: Use this category when the original recognition itself was erroneous. Review the consequences shown by the workflow and retain evidence of why the original recognition was wrong.

Subsequent event correction: Choose whether existing event data was incorrect, an existing event should not have been recognised, or an event was omitted. Select the existing event or the offered omitted-event type. The omitted-event choices shown include impairment, reversal of impairment and disposal.

Asset addition never recognised: Complete the new asset information in the subsequent asset-entry workflow and verify that it is treated as the intended correction rather than an ordinary current-period addition.

Take-on limitations: DRC assets start from imported carrying-value information at a take-on date. The form warns that earlier corrections require manual adjustments. Specialist pre-import correction templates are available to superadmins. Ask the administrator to use the supported take-on correction process rather than creating a normal event before the recorded take-on history.

An asset-classification correction is not supported by the reviewed correction service. Escalate a wrong historical classification for an approved correction approach.

5.9 Resolve events impacted by a correction

Navigation: The correction workflow, or Alerts > Click to action outstanding alert.

1. Open the Action Impacted Events page.

2. Read the list in effective-date order.

3. Open the first actionable event. Later events depend on the decision made for earlier ones.

4. Review the revised financial information and transaction value.

5. Choose Update to retain the corrected event, or Delete where the event should be disregarded under the approved correction.

6. Continue through the remaining events in order.

7. Check that no event remains Not yet actioned or Draft, and revisit the related alert.

Result: The correction's downstream history is reviewed rather than left partially processed. Do not produce a final reporting pack while related impacted-event actions remain unresolved.

5.10 Edit or delete an eligible event

Navigation: Events > event > Edit/Delete.

1. Check the event type, asset and effective period.

2. If Edit is available, open the type-specific form, update the permitted fields and evidence, then save.

3. If Delete is appropriate, review the confirmation before completing the deletion.

4. Review the asset's later events and revised financial values.

The event-detail page restricts these buttons based on audited periods. Historical changes may require a correction of error instead. Some visible event types do not have a complete edit workflow; see the accompanying publication notes before documenting them as supported actions.

The Capital Addition edit screen currently labels its amount field Recoverable Amount. Confirm you are editing the capital-addition amount by checking the event and displayed calculation; raise the label inconsistency with support if uncertain.

The standard event Edit dispatcher currently omits Capital Addition. If Edit produces an error for this event type, contact support; do not assume the existence of a separate edit page means the normal navigation works.

5.11 Refresh depreciation

Audience: Superadmins.

1. Confirm the entity and system financial year.

2. Open the refresh icon menu in the header.

3. Select Refresh Depreciation.

4. Wait for the operation to finish.

5. Reopen the relevant asset and compare its depreciation details with the reports.

This refresh recalculates stored financial information, including the WIP calculation process. It does not change the economic basis for depreciation and does not replace reviewing incorrect dates or estimates. Ordinary users who cannot see the control should ask their administrator for assistance when results appear stale.