AM06.4 - Asset Class Depreciation Rates
Use Asset Class Depreciation Rates (AM06.4) to define the depreciation
rates associated with specific asset classes, as dictated by each localPublic
Utility Commission (PUC).
**More Information
Each asset class, sub-class, or jurisdiction must map to a unique asset
account, to which a specific rate and depreciation calculation can be applied
and to unique depreciation expense and accumulated depreciation accountswhere the depreciation is stored. In addition, you may need to track each asset
class, sub-classification, or jurisdiction separately as well as ingroupings.
Depending on your needs, you can define asset class depreciation rates as
follows:
- On this form, you can define rates at the type or type and
subtype level. With this method, you define an asset class as a type, and
any sub-classifications as a subtype. You can define a separate rate for each
sub-class or jurisdiction and each type and subtype combination must bedefined with a unique asset, accumulated depreciation, and depreciation expense account.
You can report on each type subtype separately, or group the report by type.
If you have many sub-classes and jurisdictions, this strategy can be quite
cumbersome to set up.
- Another strategy is to use a single asset type, and therefore
a single set of asset and depreciation accounts across a company (possibly,
across several companies), and define a unique depreciation rate for each
accounting unit. This strategy requires you to set up an accounting unit for
each jurisdiction or sub-class you want to track, but it is still lesscumbersome to implement than the subtype method, and gives you more flexibility in terms of reporting, since you can create accounting unit groupsand accounting unit lists to report on.
To define depreciation rates at the accounting unit level, click the
Detail button to open Asset Class Depreciation Rate Detail (AM06.5).
NOTE You can combine both strategies. You can, for example, group all
switch-type equipment under one asset type, using subtypes to differentiate
between the various classes of switches, and use accounting units to reflect
the rate variations depending on jurisdictions.
| Updated Files |
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| AMBOOKTYPE |
- No Description Available. |
| INVOKED Programs |
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| ACAC
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| ACTA
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| API4
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| IFAC
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| IFCU
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| IFOB
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| IFSG
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| SLSE
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| SLSU
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| IFLU
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| IFUP
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| IFAU
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File created: Thu Jun 09 11:06:28 2016
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