20 Dec Fixed Assets Classification
For balancing and taxation purposes, a new classification of fixed assets will come into force on 1 January, 2018 (FAC 2016). The change will trigger the need for replacement of the previously used symbols which, in accordance with the regulation as of 10 December 2010, will no longer apply after 31 December, 2017. To accommodate these changes, a special tool has been developed in Microsoft Dynamics NAV that will enable you to generate tables with the current classification and fill in data on fixed assets cards.
What does the change of fixed assets classification imply?
The Regulation of the Council of Ministers of 3 October 2016 (Journal of Laws 2016, item 1864) on the fixed assets classification, introduces new classification symbols. This means that during classification of fixed assets in the relevant group, subgroup or type, entities will be obliged, for accounting purposes, to use FAC 2016 as well as new annual depreciation rates defined in annex no. 1 to the Income Tax Act, adjusted to the new FAC 2016.
Fixed Assets Classification 2016 introduces changes in the numbering and naming of groups, subgroups and types of fixed assets. If these changes affect fixed assets listed in the accounting records before 2018 (if their classification or name changes), it will be necessary to adjust the analytical records for account 01 (“Fixed assets”) to the new Fixed Assets Classification 2016 on 1 January 2018. If an entity fails to fulfill this obligation, discrepancies may occur: the same assets may be subject to another classification, depending on the time of their registration and regulations that were valid on that day.
Therefore, entities should be have a possibility of generating fixed assets reports in compliance with both – Fixed Assets Classification 2010 and Fixed Assets Classification 2016.
FAC 2016 in Microsoft Dynamics NAV
We would like to inform you that a special tool has been developed in Microsoft Dynamics NAV that will enable you to generate tables with the current classification and enter data into fixed assets cards (in case of an unambiguous link between the fixed asset number by the FAC2010 and FAC 2016). It will be possible to generate fixed assets reports in accordance with both classifications.
FAC 2016 as a product will be ready for distribution on 17 December 2017. Should you require more detailed information about the costs of the solution, please contact our Customer Service Department.