Fresh Start accounting
Hi,
Our company emerged from bankruptcy and we have a need to revalue thousands of assets based on FMV.
In US, we have one GAAP book and one tax book. We are on R12 12.1.3.
Does anyone have experience in doing similar things? If so, are there any whitepapers that could help me out.
1. We were tentatively thinking about - adjusting the cost, life and in-service-date on the asset (in the GAAP book), set it to amortize beginning the new in-service date. Write off the corresponding depreciation entry in GL.
2. Doing above, we will no longer be able to run periodic mass copy into our Tax books? Because FMV should not be reflected in tax books. I don't know if there's a way to stop these asset adjustments from going to Tax book, but allow normal asset additions, transfers etc continue to go to tax book by periodic mass copy.
Our company emerged from bankruptcy and we have a need to revalue thousands of assets based on FMV.
In US, we have one GAAP book and one tax book. We are on R12 12.1.3.
Does anyone have experience in doing similar things? If so, are there any whitepapers that could help me out.
1. We were tentatively thinking about - adjusting the cost, life and in-service-date on the asset (in the GAAP book), set it to amortize beginning the new in-service date. Write off the corresponding depreciation entry in GL.
2. Doing above, we will no longer be able to run periodic mass copy into our Tax books? Because FMV should not be reflected in tax books. I don't know if there's a way to stop these asset adjustments from going to Tax book, but allow normal asset additions, transfers etc continue to go to tax book by periodic mass copy.
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