Question

In Asset Accounting, which object do you use to handle separate valuation for parallel accounting?

A) Depreciation Area
B) Asset Class
C) Chart of Accounts
D) Cost Element

Answer 1

To handle separate valuation for parallel accounting in Asset Accounting, a 'Depreciation Area' is used. It enables different values for an asset to be tracked according to various accounting requirements like local GAAP, and IFRS.

Step-by-step explanation:

In Asset Accounting, the object used to handle separate valuation for parallel accounting is A) Depreciation Area. Depreciation Areas in Asset Accounting are used to manage different values for an asset to meet various accounting requirements, such as local GAAP, international GAAP (IFRS), and tax requirements. Each depreciation area represents a specific set of valuations, such as book value or tax value, thereby allowing separate tracking of values as required for different accounting principles or purposes.