Impairment example
In this section you will find an example of a percentage-based impairment.
You are leasing a building with a rentable floor area of 1000 m², from April 2017 for a period of 10 years for 100,000 euros per year. The right-of-use is 900,000.
After 3 years of lease, the building's value decreases by 50% due to very difficult market conditions. After 6 years, market conditions have improved and the building's value increases to 75% of the original value (= value at start of the lease), until the end of the contract. You can record the (reversal) impairments in Planon, expressed as a percentage. Planon then automatically calculates the new right-of-use. Refer to the following tables.
At the start of the lease (percentage = 100%):
Year
%
Right-of-use at start
Right-of-use at end
1
100
900,000
810,000
2
100
810,000
720,000
3
100
720,000
630,000
4
100
630,000
540,000
5
100
540,000
450,000
6
100
450,000
360,000
7
100
360,000
270,000
8
100
270,000
180,000
9
100
180,000
90,000
10
100
90,000
0
After 3 years, the percentage changes to 50% (630,000/100%/50%):
Year
%
Right-of-use at start
Right-of-use at end
1
100
900,000
810,000
2
100
810,000
720,000
3
100
720,000
630,000
4
50
315,000
270,000
5
50
270,000
225,000
6
50
225,000
180,000
7
50
180,000
135,000
8
50
135,000
90,000
9
50
90,000
45,000
10
50
45,000
0
After 6 years, the percentage changes to 75% (180,000/50%*75%)
Year
%
Right-of-use at start
Right-of-use at end
1
100
900,000
810,000
2
100
810,000
720,000
3
100
720,000
630,000
4
50
315,000
270,000
5
50
270,000
225,000
6
50
225,000
180,000
7
75
270,000
202,500
8
75
202,500
135,000
9
75
135,000
67,500
10
75
45,000
0