What is valuation reserve for special reserves in SAP FI-AA - Asset Accounting?

SAP Term: valuation reserve for special reserves

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A balance sheet posting on the liabilities side, showing the difference between the valuation of assets for tax purposes and for book depreciation purposes. Typically these reserves are not subject to taxes, and must be displayed separately in the balance sheet. In certain countries, these reserves are permitted to be formed from untaxed gain as a result of special tax depreciation, but must be taxed in later periods.

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• Key Concepts: 
  Valuation reserve for special reserves is a component of SAP's FI-AA Asset Accounting module. It is used to record the value of special reserves that are created when an asset is revalued. These reserves are used to offset any future losses in the value of the asset. 
  
  How to use it: 
  The valuation reserve for special reserves is created when an asset is revalued. The amount of the reserve is equal to the difference between the new value of the asset and its original value. This reserve can then be used to offset any future losses in the value of the asset. 
  
  Tips & Tricks: 
  When creating a valuation reserve for special reserves, it is important to ensure that the amount of the reserve is accurately recorded. This will ensure that any future losses in the value of the asset can be accurately offset. 
  
  Related Information: 
  The valuation reserve for special reserves is related to other components of SAP's FI-AA Asset Accounting module, such as depreciation and amortization. It is also related to other accounting concepts, such as accruals and deferred income taxes.