Custom Annual Depreciation Report to Meet State Regulations

Custom ReportsThere are standard fixed asset reports that are run on a monthly basis to track acquisitions, disposals and depreciation expense. Additionally, annual reports are necessary to meet normal year end requirements. But what do you do when a state or other entity requires a custom report?

Recently one of our clients faced just such a situation. The State of New York requires hospitals to submit an IRC (Institutional Cost Report) as detailed here:

http://www.health.ny.gov/facilities/hospital/rate_setting/

As part of this filing, they needed to recalculate depreciation using sum of the years’ digits method. In the past they have manually manipulated their fixed asset data to produce this report. This was very time consuming and caused a lot of questions and confusion.

This year they requested an integrated enhancement to our reporting to automatically generate the necessary report. After some analysis and design, we were able to meet their request with custom programming for a very reasonable fee. This custom annual depreciation report not only solves the problem for this year, but will also be available next year and going forward to avoid this annual headache.

As a best-of-breed fixed asset solution Bassets is very adept at meeting these special requests from our clients. If you have any reporting requirements that are difficult to comply with, bring the challenge to our support team. We are eager to evaluate any fixed asset or depreciation requests that you may have.

Questions or comments on 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.

Change the Useful Life on an Active Asset

How can you change the useful life of an asset without altering prior accumulated depreciation and only impact the calculations going forward?

The Remainder Life – RLIFE – method provides the user with the ability to shorten or lengthen the useful life of an asset at any time during the original recovery period. When the Remainder Life method is selected, Bassets eDepreciation will amortize the net book value as of the effective date of the change to Remainder Life in equal amounts over the new remaining life. There are four key pieces of information shown below:

The start date is the effective date to begin the remainder life calculation and the new useful life can be entered in both years and months. The original method is stored to ensure the accuracy of the prior calculation.

Changing the useful life of an asset will not alter the total amount of depreciation of that asset. However, it will impact the amount that is depreciated by year. For instance if a $6,000 asset was using straight line depreciation over 5 years, then the annual depreciation amount would be $1200 or $100 per period. If the useful life was then changed to 1 year after 2 years have already been depreciated, the remaining $3,600 would be spread over 12 months or $300 per period.

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.