E-Business Suite R12.1 : United Kingdom, Local Authority SORP2 Fixed Asset revaluation and impairment enhancements, 2011
(Doc ID 1329569.1)
Last updated on JUNE 17, 2022
Applies to:Oracle Assets
Information in this document applies to any platform.
The objective of this note is to assist customers of E-Business Suite to understand the implications of the Legislative update: United Kingdom, Local Authority SORP2 Fixed Assets revaluation and impairment enhancement, 2011. The necessary steps to accommodate this update are provided in this note.
UK, Local Authority SORP2 Fixed Assets revaluation and impairment enhancement, 2011:
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 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.
E-Business Suite, Release 12.1.x
Information in this document applies to: any Platform.
The following revaluation and impairment functionality has been enhanced in Oracle Assets to address the fixed asset revaluation and impairment requirements for tangible property, plant and equipment assets, as per the 'Code':
• Revaluation Loss (new feature)
• Reversal of Revaluation Loss (new feature)
• Consumption of Economic Benefit (CEB) Impairment (changed feature)
Guidance for the new features in R12.1.x implementations of the UK Local Authority Revaluation and Impairment enhancements.
The following details in sequential order, the steps required for new R12.1.x implementations of the UK Local Authority Revaluation and Impairment enhancements for UK Local Authorities
• The implementation should be the first activity carried out in the new period.
• During the implementation process, no asset transactions are to be posted or processed in the current open period.
• No pending transactions are to exist for the Asset book. If you have any asset data in the Mass Additions interface table it is acceptable, as long as you do not post these transactions in a current open period until after all the implementation steps have been completed.
1. Create and assign UK Local Authority Application Accounting Definition to a Subledger Accounting Method (SLAM) for Oracle Assets, see the Set Up section of this document.
2. Create an Asset book. For more information, see the Defining Depreciation Books section of Oracle Assets User guide.
3. Enable the UK Local Authority Accounting option. For more information, see the Set Up section of this document.
4. Assign the asset book to Asset categories. For more information, see the Defining Depreciation Books section of Oracle Assets User guide.
5. Assign additional account information to Asset categories. For more information, see the Set Up section of this document.
6. Load your asset records.
7. Execute the Calculation of Capital Adjustment / General Fund Accounts Balances for UK Local Authority Accounting Implementation program and report for each asset book.
8. Optional: Execute the Implementation Exception Report for UK Local Authority Accounting program and report.
For further detailed implementation notes and guidance please refer to the My Oracle Support Technical Brief: The UK Local Authority Revaluation and Impairment Enhancements, ID 1321454.1, which also includes
• Guidance for UK Local Authorities using prior release of the UK Local Authority Revaluations and Impairments feature
• Guidance for existing Oracle Assets implementations transitioning to UK Local Authority Revaluation and Impairment enhancements
Use the links below to download the UK, Local Authority SORP2 Fixed Assets revaluation and impairment enhancement, 2011 patch:
|Type||Description||Reference/ Doc Id|
|ARU||Assets Consolidated Patch For 12.1.1/12.1.2 May 2011||11853917:R12.FA.B|
|ARU||Assets Consolidated Patch for 12.1.3 May 2011||11853930:R12.FA.B|
|Patch Readme||Assets Consolidated Patch for 12.1.X May 2011||1317061.1|
|Release Note/Alert||UK Local Authorities Revaluation And Impairment Enhancements Release 12.1.X||1315562.1|
|Technical Brief/Implementation Notes||The UK Local Authority Revaluation and Impairment Enhancements||ID 1321454.1|
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