Oracle Assets - FA SIG Oct 2011

Transcription

1 <Insert Picture Here> Oracle Assets - FA SIG Oct 2011 Gary Chen Development Manager

2 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.

3 Oracle Assets Enhancements since

4 Agenda Summary of New/Changed FA Features Description of Each Feature Wrap Up/Q&A

5 New and Changed Features for Assets U.S. Statutory s 1)100% Bonus Depreciation Method for US Tax Law 2)Enhanced reporting for Bonus / Regular Depreciation Splits 3)Asset Impairments functionality (IAS36) Japanese Statutory s 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 s

6 New and Changed Features for Assets Worldwide Statutory s 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

7 New and Changed Features for Assets 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

8 U.S. Statutory s

9 100% Bonus Depreciation Method 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. 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 X: :R12.FA.A 12.1.X: :R12.FA.B NOTE: Must be applied as standalone patches. Not available in dot releases.

10 100% 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 MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 60 MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 84 MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 84 MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 120 MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 120 MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 180 MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 180 MACRS 100B HY MACRS: Half-Year Convention - 100% Bonus 240 MACRS 100B MQ MACRS: Mid-Quarter Convention - 100% Bonus 240 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

11 Bonus / Regular Depreciation Splits 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. 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) X: :R12.FA.A 12.1.X: :R12.FA.B NOTE: Fix also included in rollup patch Assets Consolidated Patch for October 2009 ( :R12.FA.A)

12 Asset Impairments functionality (IAS36) 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. The product can now calculate and generate asset impairments and impairment journal entries in accordance with the IAS 36 guidelines X: :R12.FA.A (Assets Consolidated Patch for October 2009) 12.1.X: :R12.FA.B (Assets Consolidated Patch for September 2009) NOTE: Fix also included in base and later.

13 Japanese Statutory s

14 Migration Features for Japan 2007 Tax Reform 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. The Asset Workbench, Mass Additions, and WebADI now allow addition of assets already in Extended Depreciation X: :R12.FA.A (Assets Consolidated Patch for October 2009) 12.1.X: :R12.FA.B (Assets Consolidated Patch for September 2009) NOTE: Fix also included in base and later.

15 Revised Japanese Depreciable Assets Tax Reports Previously, users of the Japan Depreciable Assets Tax Report could only register and provide descriptive information for a single company. 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 X: :R12.FA.A (Japan Tax Reforms 2007 and 2008 Rollup Patch for November 2009) 12.1.X: :R12.FA.B (Japan Tax Reforms 2007 and 2008 Rollup Patch for September 2009 ) NOTE: Fix also included in base and later.

16 Enhanced What-if Analysis Extension Users need to be able to use the new Japan 2007 Tax Reform methods with What If Analysis. What If Analysis now supports the new JP-250 DB methods and Extended Depreciation for Japanese assets X: :R12.FA.A (Assets Consolidated Patch for October 2009) 12.1.X: :R12.FA.B (Assets Consolidated Patch for September 2009) NOTE: Fix also included in base and later.

17 Impairments For Japanese s Customers need the ability to impair assets using Japanese methods. 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 : :R12.FA.B NOTE: Fix also included in base

18 Worldwide Statutory s

19 United Kingdom: Support for Revaluation and Impairments for Local Accounting Authority (SORP I) 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) The SORP includes recommendations on how fixed assets are to be revalued from April 1, 2007 onwards for UK Local Authorities. Oracle Assets revaluation and impairment functionality now addresses the fixed asset revaluation requirements as per SORP that apply to UK local authorities.

20 United Kingdom: Support for Revaluation and Impairments for Local Accounting Authority (SORP I) (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 12.0.X: :R12.FA.A (Assets Consolidated Patch for October 2009) 12.1.X: :R12.FA.B (Assets Consolidated Patch for September 2009) NOTE: Fix also included in base and later.

21 United Kingdom: Support for Revaluation and Impairments for Local Accounting Authority (SORP II) 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.

22 United Kingdom: Support for Revaluation and Impairments for Local Accounting Authority (SORP II) 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) : :R12.FA.B (Assets Consolidated Patch For / May 2011) : :R12.FA.B (Assets Consolidated Patch for May 2011) NOTE: Fix also included in base 12.2

23 Germany: Revised Asset Summary report The Asset Summary report for Germany did not display assets that were capitalized in the correct column. The German Asset Summary report now tracks recently capitalized assets correctly X: :R12.FA.A 12.1.X: :R12.FA.B NOTE: Fix also included in base and later.

24 Russia: Depreciation for Member Retirements 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. Retirements now work as expected for member retirements X: :R12.FA.B

25 Group Depreciation Enhancements

26 Conversion of Energy UOP w/ Reserve & Non-Depreciating 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. Energy UOP assets can now be added with reserve and with the Depreciate Flag set to No X: :R12.FA.A 12.1.X: :R12.FA.B NOTE: Fix also included in base and later.

27 Allow Backdated Energy Assets w/ Positive Cost & Negative Reserve Allow ability to add Energy UOP assets with Positive Cost and Negative Accumulated Depreciation. Users are now able to create Energy UOP assets with Positive Cost and Negative Reserve X: :R12.FA.A 12.1.X: :R12.FA.B NOTE: Fix also included in base and later.

28 Allow Mass Additions of Cost Sign Changes in Members 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. Cost adjustments on Energy UOP assets can flip the sign on the cost as long as the asset is not over depreciated X: :R12.FA.A 12.1.X: :R12.FA.B NOTE: Fix also included in base and later.

29 Enhancements for Method Change for Energy UOP Assets Allow method change for Energy UOP assets. 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).

30 Enhancements for Method Change for Energy UOP Assets (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 X: :R12.FA.B

31 Mass Change Reports Display Group Related Changes 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. The Mass Change Preview and Review reports now display group and member changes accurately X: :R12.FA.A 12.1.X: :R12.FA.B NOTE: Fix also included in base and later.

32 Ability to Expense Member Adjustments in Tax Books 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. 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 X: :R12.FA.A (Assets Consolidated Patch for October 2009) 12.1.X: :R12.FA.B (Assets Consolidated Patch for September 2009) NOTE: Fix also included in base and later.

33 Usability Enhancements

34 Allow Tax Books w/ Different Chart of Accounts / Currency than Corporate Book Allow Tax books to be associated with Secondary Ledgers having a different Chart of Account and/or Currency than the Corporate Book. has now been enabled. However, users must still create their own custom reporting to extract data X: :R12.FA.B NOTE: Fix also included in base 12.2.

35 Drilldown from GL to SLA for Depreciation Entries Allow drilldown from General Ledger to Subledger Accounting for Depreciation Entries. (Previously, this was only enabled for Transactional Entries.) Users can now drilldown from General Ledger to SLA for Depreciation Entries in Fixed Assets X: or later

36 Product Based SLA On-Demand Upgrade Previously, customers needed to use the SLA Hot Patch to upgrade additional historical entries for SLA, and the upgrade would affect all products. Through a concurrent process in the subledger responsibility, customers can upgrade that subledger only X: or later

37 Ability to Project Over Closed Periods Previously, when customers used Projections over Closed Periods, these values were incorrect. The Projection report now uses actuals for periods that are already closed, and for assets in an open period for which depreciation has run X: :R12.FA.A 12.1.X: :R12.FA.B

38 Additional Fields in Mass Additions Allow depreciation method fields to be enabled in Mass Additions. 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 12.0.X: :R12.FA.A (Assets Consolidated Patch for October 2009) 12.1.X: :R12.FA.B (Assets Consolidated Patch for September 2009) NOTE: Fix also included in base and later.

39 Flexibility in Book Names Ability to add books that begin with numbers. Users are now able to create books with names that begin with numbers X: :R12.FA.A (Assets Consolidated Patch for October 2009) 12.1.X: :R12.FA.B (Assets Consolidated Patch for September 2009) NOTE: Fix also included in base and later.

40 Wrap Up/ Q&A

41 Thank You