Question

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

a) Depreciation area
b) Chart of accounts
c) Asset class
d) Valuation area

Answer 1

In Asset Accounting, separate valuation for parallel accounting is handled using a Depreciation area, which facilitates the tracking of various values for a single asset according to different accounting principles.

Step-by-step explanation:

In Asset Accounting, the object used to handle separate valuation for parallel accounting is a) Depreciation area. The depreciation area in asset accounting is a significant concept that allows for the representation of various values for a single asset. This is particularly important when an organization needs to meet different accounting principles, such as local GAAP, IFRS, or tax regulations, simultaneously.

Each depreciation area can be configured to post to the general ledger, independently of the others, allowing for separate values to be tracked and managed according to the respective accounting principles. When setting up asset accounting in a system, it's crucial to identify the specific requirements for parallel accounting and configure the necessary depreciation areas accordingly.