Monthly Archives: July 2012

Case Study – City of Columbia

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The City of Columbia (population: over 30,000) is located approximately 45 miles south of Nashville in the heart of Maury County. Recreational opportunities include a variety of parks that offer a wide range of sports activities for all ages. For those who enjoy historical home sites, the ancestral home of the eleventh President of the United States, James K. Polk, is located two blocks from the center of town.

When you visit the City of Columbia, you are immediately struck by its rich history. As home to a former President of the United States, the City of Columbia prides itself as an outstanding example of local government. In order to meet their GASB 34 compliance, the city looked for a fixed asset solution with a strong history of success. In Bassets they found a software package that has been solving depreciation problems for over two decades. The City of Columbia is a very smart student of history and they selected the experience of Bassets to ensure success.

Danny King, from the Finance Department at the City of Columbia, had this to say, “We have been using Bassets software for 10 years and the City of Columbia upgraded to eDepreciation in January 2012.  We have found Bassets very reliable, easy to use and the transition to eDepreciation was simple and painless.”

Questions or comments about this post? We invite you to respond in the space below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

Determining Asset Property Class – IRS PUB 946

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IRS Publication 946 explains how you can use depreciation to recover the cost of business or income-producing property. One of the key elements in determining the correct annual depreciation amount is selecting the appropriate property class. The property classes are listed in Appendix B of this publication with the class life and correct recovery periods for both General Depreciation System (GDS) and the Alternative Depreciation System (ADS).

Bassets eDepreciation includes an enhanced version of the IRS property class table with the following information for each asset class:

  • Property Type
  • Listed Property
  • Depreciation Method
  • First Year Convention
  • Recovery Periods
  • Bonus Code
  • Section 179
  • GDS or ADS

The asset classes can then be associated with your corresponding General Ledger codes. This allows the business rules in Bassets eDeprciation to set the correct default depreciation values during asset data entry and ensure correct calculations.

Source: Publication 946 – How To Depreciate Property

Questions or comments about this post? We invite you to respond in the space below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

Bassets eDepreciation G/L Interface

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A handy feature of Bassets eDepreciation is the G/L Interface module. This useful tool allows the user to generate monthly depreciation journal entries in the import format required by their General Ledger. To find out more detail on how to utilize this powerful feature, watch the short video below.

Questions or comments about this post? We invite you to respond in the space below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

Converting CIP (Construction in Progress) Invoices to Fixed Assets

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There are several stages in the life of fixed assets. They are acquired or constructed before being placed in service for depreciation. Most assets, like computers, vehicles or others which do not require additional preparation are immediately placed in service and begin depreciating. Others, like buildings or production lines, may take some time before they are ready for use. This second group of assets are considered to be construction in progress and do not begin depreciating until they are put into use.

The CIP module in Bassets eDepreciation enables you to track a group of invoices by project that will be consolidated into one or more asset records. Invoices can be entered during the construction to record the associated costs until the finished asset is placed in service. Once the project is completed, the sum of all the invoices will be totaled into a fixed asset. Now the asset is ready for use and depreciation will begin.

The invoice records in the CIP module that have been consolidated into asset records will be tagged with the date that they were consolidated, and the System Asset Number of the asset record that was created by the consolidation. This allows for easy retrieval to answer any questions or provide audit detail.

Invoices Consolidated to Fixed Assets

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More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

When Will US Companies Need To Comply with IFRS?

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Last week the SEC released a detailed review of IFRS and the impact on financial reporting for US companies. The report examines the implications of adopting IFRS into US financial reporting from both a cost and benefit point of view. The SEC does not offer a definitive decision, but rather confirms that the new reporting system is not yet supported by a large number of companies in the US.

CGMA’s news release and a link to the full report.
The American Institute of CPA’s believes that IFRS is positioned to become the standard in global financial reporting and they support the efforts of the SEC in compiling a thorough review of rules. The SEC also goes on to say the cost of adopting the full IFRS standards for accounting would be extremely expensive and companies questioned whether the benefits would be worth the cost.
AICPA Opinion

On the other side, the International Accounting Standards Board has been disappointed that the US has been slow to embrace this change. They would like to see the SEC recommend a more aggressive action plan toward switching to the global system.
IASB Opinion

The good news is that Bassets eDepreciation is already IFRS compliant and will be ready whenever the time comes for US companies to meet these new reporting requirements.

Questions or comments about this post? We invite you to respond in the space below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.