Oracle Assets - FA SIG Oct...

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Oracle Assets - FA SIG – Oct 2011

Gary Chen

Development Manager

The following is intended to outline our general

product direction. It is intended for information

purposes only, and may not be incorporated into any

contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decisions.

The development, release, and timing of any

features or functionality described for Oracle‟s

products remains at the sole discretion of Oracle.

Oracle Assets

Enhancements since 12.0.3

Agenda

• Summary of New/Changed FA Features

• Description of Each Feature

• Wrap Up/Q&A

New and Changed Features for Assets

U.S. Statutory Requirements

1)100% Bonus Depreciation Method for US Tax Law

2)Enhanced reporting for Bonus / Regular Depreciation Splits

3)Asset Impairments functionality (IAS36)

Japanese Statutory Requirements

1)Additional Migration Features for Japan 2007 Tax Reform

2)Revised Japanese Depreciable Assets Tax Reports

3)Enhanced What-if Analysis Extension

4)Impairments For Japanese Requirements


Worldwide Statutory Requirements

1)United Kingdom: Support for Revaluation and Impairments for

Local Accounting Authority (SORP I and II)

2)Germany: Revised Asset Summary report

3)Russia: Depreciation for Member Retirements

Group Depreciation Enhancements

1)Conversion of Energy UOP w/ Reserve & Non-Depreciating

2)Allow Backdated Energy Assets w/ Pos Cost & Neg Reserve

3)Allow Mass Additions of Cost Sign Changes in Members

4)Enhancements for Method Change for Energy UOP Assets

5)Mass Change Reports Display Group Related Changes

6)Ability to Expense Member Adjustments in Tax Books


Usability Enhancements

1)Allow Tax Books w/ Different Chart of Accounts /

Currency than Corporate Book

2)Drilldown from GL to SLA for Depreciation Entries

3)Product Based SLA On-Demand Upgrade

4)Ability to Project Over Closed Periods

5)Flexibility in Book Names

6)Additional Fields in Mass Additions

U.S. Statutory Requirements

100% Bonus Depreciation Method

Requirement

President Obama signed new US tax legislation into law 17-Dec-2010 which

allows qualified property 100% bonus depreciation in year acquired, similar

to the previous 30% and 50% bonus methods.

Solution

Fifteen new methods. FAS771 report also modified.

NOTE: we are not providing the 330/468 STL MACRS methods since they exceed the 30 year

threshold for the 100% bonus legislation.

Availability

12.0.X: 11701485:R12.FA.A

12.1.X: 11701485:R12.FA.B

NOTE: Must be applied as standalone patches. Not available in dot releases.

100% Bonus Depreciation Method

Code Name Life In Months

MACRS 100B HY HY MACRS: Half-Year Convention - 100% Bonus 36

MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 36

MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 60










STL 100B Straight-Line with 100% Bonus Depreciation 36

STL 100B HY Straight-Line Half-Year Convention with 100% Bonus 180

STL 100B MQ Straight-Line Mid-Quarter Convention with 100% Bonus 180

Bonus / Regular Depreciation Splits

Requirement

The 4562 report separately reports regular depreciation and bonus

depreciation. Although the report can be ran throughout the year, the

bonus amounts (Special Depreciation) do not show until year end.

Solution

The 4562 report now displays the split of bonus and regular depreciation

amounts throughout the year (i.e., bonus to show throughout the year and

not only at year end).

Availability

12.0.X: 8613202:R12.FA.A

12.1.X: 11701485:R12.FA.B

NOTE: Fix also included in rollup patch Assets Consolidated Patch for 12.0.6 October 2009

(8706840:R12.FA.A)

Asset Impairments functionality (IAS36)

Requirement

Support for IAS 36, which addresses financial accounting and reporting for

impairment of assets. The provisions provide that assets should not be

carried at more than their recoverable amounts and for entities to carry out

impairment tests for their tangible and intangible assets.

Solution

The product can now calculate and generate asset impairments and

impairment journal entries in accordance with the IAS 36 guidelines.

Availability

12.0.X: 8706840:R12.FA.A (Assets Consolidated Patch for 12.0.6 October 2009)

12.1.X: 8706842:R12.FA.B (Assets Consolidated Patch for 12.1.1 September 2009)

NOTE: Fix also included in base 12.1.2 and later.

Japanese Statutory Requirements

Migration Features for Japan 2007 Tax Reform

Requirement

Prior 2007 Japan Tax Reform product enhancements allowed assets

added into the system to be assigned new depreciation methods.

However, the ability to assign existing assets to the new methods was

needed.

Solution

The Asset Workbench, Mass Additions, and WebADI now allow addition of

assets already in Extended Depreciation.

Availability




Revised Japanese Depreciable Assets Tax Reports

Requirement

Previously, users of the Japan Depreciable Assets Tax Report could only

register and provide descriptive information for a single company.

Solution

The report has now been enhanced to cater for multiple companies. Also,

additional reference information is enterable in the report, and the report

layout format conforms to the legal standard.

Availability

12.0.X: 8978869:R12.FA.A (Japan Tax Reforms 2007 and 2008 Rollup Patch for 12.0.6

November 2009)

12.1.X: 8946711:R12.FA.B (Japan Tax Reforms 2007 and 2008 Rollup Patch for 12.1.1

September 2009 )


Enhanced What-if Analysis Extension

Requirement

Users need to be able to use the new Japan 2007 Tax Reform methods

with What If Analysis.

Solution

What If Analysis now supports the new JP-250 DB methods and Extended

Depreciation for Japanese assets.

Availability




Impairments For Japanese Requirements Requirement

Customers need the ability to impair assets using Japanese methods.

Solution

As defined by previous regulatory initiatives and the Japan Tax Reform of

2007, impairment functionality has been extended in compliance with

the Japanese accounting regulations. The following impairment feature

functionality is now available for Japan depreciation methods.

• Japan specific impairment loss calculations

• Assignment and impairment of assets within Cash Generating Units

• Impairment of fully reserve and non-depreciating assets

• Impairment of assets exceeding depreciation limits

Availability

12.1.2: 9509399:R12.FA.B

NOTE: Fix also included in base 12.1.3

Worldwide Statutory Requirements

United Kingdom: Support for Revaluation and

Impairments for Local Accounting Authority (SORP I)

•

Requirement

CIPFA/LASAAC Joint Committee produced, in accordance with the

Accounting Standards Boards code of practice, a Code of Practice on

Local Authority Accounting in the United Kingdom 2006 on proper

accounting practice released A Statement of Recommended

Accounting Practice (SORP) 2006. The SORP includes

recommendations on how fixed assets are to be revalued from April 1,

2007 onwards for UK Local Authorities.

Solution

Oracle Assets revaluation and impairment functionality now addresses the

fixed asset revaluation requirements as per SORP that apply to UK local

authorities.


Impairments for Local Accounting Authority (SORP I)

•

Solution (continued)

The revaluation and impairment functionality provides the following:

1. Revaluation Reserve Accounting Net Book Value

2. Generating Depreciation Neutralizing Entries

3. Revaluation of Donated and Discounted Assets

4. Impairment Classification Types

5. Reason and Purpose Descriptions

6. Generating Impairment Loss Neutralizing Accounting Entries

7. Revaluations Directly Related to Prior Impairments

8. Generate Asset Decommission and Disposal Entries

Availability





Impairments for Local Accounting Authority (SORP II)

•

Requirement

By March 31, 2011 UK local authorities are to account for their fixed

assets in accordance with guidelines as detailed in the Code of practice

on local authority accounting in the United Kingdom 2010/11 based on

International Reporting Standards, released by CIPFA in December

2009, also referred to as the 'Code„. The move to the IFRS-based Code

from the UK GAAP-based SORP resulted in changes to the accounting

entries related to revaluations and impairments for property, plant and

equipment assets.


Impairments for Local Accounting Authority (SORP II)

•

Solution

The following UK local authorities revaluation and impairment changes

were completed to address the fixed asset revaluation and impairment

requirements for tangible property, plant and equipment assets:

• Revaluation Loss (new feature)

• Reversal of Revaluation Loss (new feature)

• Consumption of Economic Benefit (CEB) Impairment (changed feature)

Availability

12.1.1 - 12.1.2: 12810804:R12.FA.B (Assets Consolidated Patch For 12.1.1/12.1.2

May 2011)

12.1.3: 11853930:R12.FA.B (Assets Consolidated Patch for 12.1.3 May 2011)

NOTE: Fix also included in base 12.2

Germany: Revised Asset Summary report

•

Requirement

The Asset Summary report for Germany did not display assets that were

capitalized in the correct column.

Solution

The German Asset Summary report now tracks recently capitalized assets

correctly.

Availability

12.0.X: 8230524:R12.FA.A

12.1.X: 9888070:R12.FA.B


Russia: Depreciation for Member Retirements

•

Requirement

According to Russian Legal requirements, non-zero depreciation should

be charged in the period of retirement and this amount should be

included into reserve during "Calculate Gain/Loss" process. For Russia,

this behavior is expected for both standalone assets and member

assets belonging to a group asset. Core functionality works fine for

standalone assets, but it does not work as expected for member assets.

Solution

Retirements now work as expected for member retirements.

Availability

12.1.X: 11886090:R12.FA.B

Group Depreciation Enhancements

Conversion of Energy UOP w/ Reserve

& Non-Depreciating

Requirement

In order for customers to be able to convert from a legacy or existing

system, users need to be able to add Energy UOP assets with reserve,

but with the Depreciate Flag set to No.

Solution

Energy UOP assets can now be added with reserve and with the

Depreciate Flag set to No.

Availability

12.0.X: 8563703:R12.FA.A

12.1.X: 8797810:R12.FA.B


Allow Backdated Energy Assets w/

Positive Cost & Negative Reserve

Requirement

Allow ability to add Energy UOP assets with Positive Cost and Negative

Accumulated Depreciation.

Solution

Users are now able to create Energy UOP assets with Positive Cost and

Negative Reserve.

Availability

12.0.X: 8563703:R12.FA.A

12.1.X: 8797810:R12.FA.B


Allow Mass Additions of Cost Sign

Changes in Members

Requirement

Allow ability to setup Group / Member assets to have Over Depreciate

Option flag set to “Allow and Depreciate” for UOP assets. This would

subsequently allow a cost sign change for a member asset being added

via Mass Additions.

Solution

Cost adjustments on Energy UOP assets can flip the sign on the cost as

long as the asset is not over depreciated.

Availability

12.0.X: 8563703:R12.FA.A

12.1.X: 8797810:R12.FA.B


Enhancements for Method Change for

Energy UOP Assets

Requirement

Allow method change for Energy UOP assets.

Solution

1. Method change from Energy UOP to any other method is allowed for

capitalized standalone assets.

2. Method change from any other method to Energy UOP is allowed for

capitalized standalone assets.

3. Method change from and to other methods of Energy UOP group and

member assets is NOT allowed.

4. Method change from Energy UOP to any other method for capitalized

standalone asset is not allowed if current reserve is of the opposite

sign of recoverable cost (i.e., NBV more than recoverable cost).

Enhancements for Method Change for

Energy UOP Assets

Solution (continued)

5. New flag “Prevent Previous Period Amortized Changes" at the Book

Control level. Backdated adjustment and retirements are not allowed if

this flag is set to Yes at the book level. However, this flag does not

impact expensed assets.

Availability

12.1.X: 10125011:R12.FA.B

Mass Change Reports Display Group

Related Changes

Requirement

Any changes made via Mass Change that effect a Group asset cannot be

seen in the Mass Change Preview or Review Reports accurately. The

reports should display all changes to both member and group assets.

Solution

The Mass Change Preview and Review reports now display group and

member changes accurately.

Availability

12.0.X: 8563703:R12.FA.A

12.1.X: 8797810:R12.FA.B


Ability to Expense Member Adjustments in

Tax Books

Requirement

When member adjustments are mass copied from the Corporate Book to

the Tax Book, they are amortized. However, the ability for these to be

expensed is needed to meet MACRS HY type requirements.

Solution

A new flag to copy amortized additions and adjustments as expensed has

been added at the Book Controls level. When this flag is enabled,

amortized additions and adjustments are Mass Copied as expensed.

Availability




Usability Enhancements

Allow Tax Books w/ Different Chart of

Accounts / Currency than Corporate Book

Requirement

Allow Tax books to be associated with Secondary Ledgers having a different

Chart of Account and/or Currency than the Corporate Book.

Solution

Requirement has now been enabled. However, users must still create their

own custom reporting to extract data.

Availability

12.1.X: 12599545:R12.FA.B

NOTE: Fix also included in base 12.2.

Drilldown from GL to SLA for Depreciation Entries

Requirement

Allow drilldown from General Ledger to Subledger Accounting for

Depreciation Entries. (Previously, this was only enabled for

Transactional Entries.)

Solution

Users can now drilldown from General Ledger to SLA for Depreciation

Entries in Fixed Assets.

Availability

12.1.X: 12.1.3 or later

Product Based SLA On-Demand Upgrade

Requirement

Previously, customers needed to use the SLA Hot Patch to upgrade

additional historical entries for SLA, and the upgrade would affect all

products.

Solution

Through a concurrent process in the subledger responsibility, customers

can upgrade that subledger only.

Availability

12.1.X: 12.1.2 or later

Ability to Project Over Closed Periods

Requirement

Previously, when customers used Projections over Closed Periods, these

values were incorrect.

Solution

The Projection report now uses actuals for periods that are already closed,

and for assets in an open period for which depreciation has run.

Availability

12.0.X: 9777127:R12.FA.A

12.1.X: 11843140:R12.FA.B

Additional Fields in Mass Additions

Requirement

Allow depreciation method fields to be enabled in Mass Additions.

Solution

These fields are now in the Mass Additions form and interface table: • Depreciation Method Code

• Life in Months

• Basic Rate

• Adjusted Rate

• Prorate Convention Code

• Bonus Rule

Availability




Flexibility in Book Names

Requirement

Ability to add books that begin with numbers.

Solution

Users are now able to create books with names that begin with numbers.

Availability




Wrap Up/ Q&A

Thank You

Oracle Assets - FA SIG Oct...

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