Costs, Depreciation, Impairment, and Carrying Value

Separate bases

Keep operational quantity and condition separate from book, tax, management, insurance, replacement, lender, and fair-value bases. Every amount states currency, basis, effective date, policy version, source, and calculation lineage.

Lifecycle economics

• Acquisition collects purchase price, freight, installation, duties, discounts, directly attributable cost, grants, foreign-currency basis, and capitalization decision.
• Components may have different useful lives and depreciation schedules.
• Depreciation starts when available for use, supports approved methods, residual value, useful-life review, prospective estimate changes, and period locks.
• Impairment uses a review case and evidence; it never silently rewrites cost.
• Disposal separates proceeds, disposal costs, derecognition, and gain/loss.
• Maintenance, downtime, energy, consumables, insurance, and disposal costs feed lifecycle cost and TCO scenarios but estimates are never presented as posted values.

Control model

The proposer cannot approve their own posted entry. Posted entries are append-only. Closed periods reject ordinary postings. Corrections reverse and replace; they do not mutate history.

Current certification validates component retirement and replacement, prospective useful-life/residual-value changes, complete straight-line and diminishing-balance schedules, NRV write-down posting, TCO sensitivity/confidence, disposal, reversal, hard close, and balanced external journal receipt reconciliation. Units-of-production remains driven by actual usage instead of a forecast schedule. UBL, XBRL GL, and IFRS taxonomy outputs remain versioned non-filing adapters.

Journal reconciliation

1. A finance proposer creates a balanced batch in an open period.
2. A different approver exports it and records the exact SHA-256 payload hash.
3. The receiving accounting system returns a unique receipt and balanced accepted totals.
4. A reconciler who did not approve the batch matches receipt totals before closing it as reconciled.

Partial acceptance or a hash/totals mismatch leaves the batch rejected for investigation; it is never silently treated as posted.

Insurance, loan, and replacement example

For a borrowed camera, keep the owner’s agreement and commercial/liability terms on the Loaned Assets record. If FPH insures it while in care, a proposer creates the policy, a different finance operator activates it, and coverage records the insured value and permitted locations. A damage claim links the policy, asset, incident time, amount, evidence, and signed-in proposer without changing ownership or carrying value.

For an owned generator, actual fuel, maintenance, downtime, and insurance enter lifecycle cost separately from capital postings. A replacement forecast records the as-of date, amount, probability, model version, assumptions, and confidence. TCO sensitivity shows favorable/base/adverse present values; it remains a decision estimate until an independently approved value entry is posted.

Reporting framework

An accountant must approve the applicable PFRS/IFRS or other basis. AMS stores configurable policy evidence and makes no filing or compliance claim automatically.