14.7. Devaluation Management

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Enter assumptions regarding Devaluation Management

Leanus provides a specific procedure for the Devaluation Management (Customer Receivables, Inventories, Other Receivables and Fixed Assets)

Devaluations can have different impacts and accounting methods. The calculation methods adopted in Leanus are shown below; the user can always intervene by modifying the results automatically processed

Write-off of Customer Credits (Ex. -100)

• Impact on the Income Statement: Reduction of the Value of Write-downs of the same amount (-100); Change in Income Before Taxes
• Impact on Balance Sheet: Reduction of the Value of Customer Credits of the same amount (-100)
• Impact on Financial Statement: Increase in Devaluation of the same amount (+100); no change in the Customer Credit Delta (as calculated net of financial write-downs)
  

Inventory Devaluation (Ex. -100)

• Impact on the Income Statement: Reduction of the Value of Write-downs of the same amount (-100); Change in Pre-Tax Income; no impact on CE Inventory Change.
• Impact on Balance Sheet: Reduction of Inventory Value of the same amount (-100)
• Impact on Financial Statement: Increase in Devaluation of the same amount (+100); no change in the Inventory Delta (as calculated net of financial write-downs)
  

Credit Impairment (Ex. -100)

• Impact on the Income Statement: Reduction of the Value of Write-downs of the same amount (-100); Change in Income Before Taxes
• Impact on Balance Sheet: Reduction of the Value of Credits of the same amount (-100)
• Impact on Financial Statement: Increase in Devaluation of the same amount (+100); no change in the Delta Credits (as calculated net of financial write-downs)
  

Depreciation of Fixed Assets (Ex. -100)

• Impact on the Income Statement: Reduction of the Value of Write-downs of the same amount (-100); Change in Income Before Taxes
• Impact on Balance Sheet: Reduction in the value of fixed assets of the same amount (-100)
• Impact on Financial Statement: Increase in Devaluation of the same amount (+100); no change in the Net Fixed Asset Delta (as calculated net of financial write-downs)
  

Procedure for entering Devaluations

Log in to Leanus
Research the company of your interest
Go to Business Plan / Income Statement / Numerical Analysis or Balance Sheet / Numerical Analysis
Scroll down the page downward
Enter the value of the Devaluations (with the “-” sign)
Update

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