AS116 + REFX + Interest calculation method

[former_member660811]

Dear All,

We are implementing REFX Lease in process, which has to adhere with Indian AS116 standards. When we simulate the contract value to arrive at the "Net Present Value (NPV)", we are not getting the calculation as we arrive in excel.

Should the value be arrived based on interest calculation method or is it anything else which we are missing?

Also Please share all relevant S-Notes that has to be implemented for AS116

Thanks and regards,

Siva

[former_member660811]

Hi Hitesh,

Sorry for the late reply.

We are using compounding calculation - 1/(1+(N/100))

For Interest calculation method in , we are considering W/364 days as the option.

We have tried all the options available in interest calculation methods, but still there is a difference.

If the total years is 10, then we are getting correct value. If the years are 9 or lesser, then there is a difference in NPV.

Thanks and regards,

Sivarajesh J

[former_member441136]

Hi Siva,

Which Interest method you are using in Excel, is this Compounding or Linear?

Also how many days, you are considering 360 or 365?

SAP is capable enough to generate any type of PV calculation, need to check your excel calculation.

Regards,

Hitesh