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Instructions www.excel-skills.com
This comprehensive template enables users to compile a complete fixed assets register which incorporates an unlimited number of fixed asset classes and categories; facilitates recording additions, disposals, revaluations and impairments; automatically calculates monthly and year-to-date depreciation charges; calculates tax values based on user defined tax codes; calculates deferred tax balances and includes a comprehensive automated journal report. The template has been designed specifically for the requirements of IFRS but can also be used to compile a simple fixed asset register which is only based on historical costs. Note: This template only accommodates depreciation calculations on a straight line basis. If you therefore need to calculate depreciation on a reducing balance or other depreciation basis, the template will unfortunately not be suitable for your requirements. The following sheets are included in this template: Set-up - the input cells on this sheet enable you to customize the template for your business. You can enter your business name, select a year end period, specify an income tax percentage, maintain the default fixed asset classes, maintain the default fixed asset categories and maintain the default tax codes. A complete list of user input error codes are also included on this sheet for information purposes. Assets - this sheet enables users to create a unique asset code for all fixed assets and the columns with the light blue column headings contain all the comprehensive, automated calculations that form part of the fixed asset register. User input is limited to entering an asset identification number, asset description, asset type, asset category and tax code. The period for which the fixed asset register is compiled is determined by the review date that is specified at the top of the sheet. Transact - all asset transactions need to be recorded on this sheet. Asset transactions include acquisitions, revaluations and disposals. User input is limited to entering the transaction date, transaction type, asset number, supplier, document number, transaction amount, asset lifetime, residual value and proceeds on disposal. The columns with light blue column headings contain the formulas that form the basis of all the calculations that are required in order to produce a comprehensive, accurate fixed asset register. Category - this sheet contains a fixed assets summary which is based on the fixed asset categories that are created on the Set-up sheet. No user input is required on this sheet and 30 fixed asset categories are accommodated. Additional fixed asset categories can be added by simply copying the formulas in the last row into the required number of additional rows. Class - this sheet contains a fixed assets summary which is based on the asset classes that are created on the Set-up sheet. No user input is required on this sheet and a maximum of 30 asset classes are accommodated. Journals - this sheet contains an automated journal report for all fixed asset transactions. The journal report can be compiled on a monthly or year-to-date basis and is based on the account numbers that are specified in the asset category set-up on the Set-up sheet. The journal report accommodates 30 asset categories but additional categories can be added by simply copying the formulas in the last row into the required number of additional rows.
Template Set-up
The template can be customized for your business by editing the default business details, asset categories, asset classes and tax codes on the Set-up sheet. The business name that is entered in cell C5 is used as a heading on all the other sheets, the year-end month that is selected in cell C7 is used in order to calculate year-to-date balances and the income tax percentage that is specified in cell C9 is used to calculate deferred tax balances. Asset Classes The template includes 6 default fixed asset classes which can be customized in the cell range from cell A13 to cell B18. The default asset class codes in column A and the default asset class descriptions in column B can be amended and you can add additional asset classes by simply inserting a new row between the first and last class codes, entering a new code for the asset class in column A and entering a description for the new class in column B.
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The template includes 10 default tax codes in the cell range from cell A38 to J47 but you can add as many additional tax codes as required. The tax codes are used to calculate the tax allowances that can be claimed for each fixed asset and the tax values at the beginning and the end of each financial year. These tax balances are then used in order to calculate the deferred tax balances and charges for each financial year.
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Asset Set-up
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Error Codes
The following error codes may result from inaccurate input on the Assets and Transact sheets and will be displayed in the Error Code columns on the appropriate sheet. The heading of the affected input column will also be highlighted in orange in order to indicate that an error is present in the appropriate column: E1 - this error code means that a duplicate asset number has been created on the Assets sheet. If you delete the row that contains the duplicate asset number, the error is resolved. E2 - this error code means that the asset category that needs to be selected in column E on the Assets sheet is blank or does not exist. Select a valid asset category from the list box in order to resolve the error. Note that all the asset categories that are included on the Set-up sheet are included in the list box. E3 - this error code means that the asset number that needs to be selected in column C on the Transact sheet is blank or does not exist. Select a valid asset number from the list box in order to resolve the error. Note that all the asset numbers that are recorded on the Assets sheet are included in the list box. E4 - this error code means that the transaction type that needs to be selected in column B on the Transact sheet is blank or does not exist. Select a valid transaction type from the list box in order to resolve the error. Note that this error may also be displayed in you attempt to record a transaction for an asset that has been disposed of previously. Once a disposal is recorded for an asset (even if the asset has only been scrapped and not actually disposed of), any subsequent transactions need to be recorded by using a new asset number. E5 - this error code means that more than one acquisition transaction has been recorded for the same asset. An asset can only be acquired once. If you therefore need to bring the asset back into the fixed asset register after perhaps recording a disposal transaction, a new asset number must be used. E6 - this error code means that an invalid transaction amount has been recorded for the selected transaction type. All transaction amounts should be recorded as positive amounts and a nil transaction amount needs to be entered for all disposal transactions.
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Calculation Methodology
In this section of the instructions, we'll cover the calculation methodology that is applied in order to compile a fixed asset register with this template. We cover all the different types of transactions that are included in the template and we'll explain the reasoning behind how each type of transaction is incorporated into the template calculations. Additions Fixed asset additions are included in the fixed asset register in the month of the acquisition and also depreciated from the month of acquisition. All fixed asset additions need to be recorded as acquisition type transactions on the Transact sheet in order to include the assets in the fixed asset register. Acquisitions are usually recorded in the primary accounting system by allocating the addition to the appropriate fixed asset account and crediting the bank or accounts payable control account. For the purpose of our automated journal report, fixed asset additions are allocated to the fixed asset cost account that is specified for the appropriate fixed asset category on the Set-up sheet and credited against the Bank account. Disposals Fixed assets that are disposed of are removed from the fixed asset register in the month of the disposal. All disposals need to be recorded as disposal type transactions on the Transact sheet. The gross carrying value of the asset is deducted from the opening balance and the accumulated depreciation on the asset is deducted from the accumulated depreciation as at the end of the month before the disposal. Note: Assets that are disposed of are not depreciated in the month of the disposal. This means that no depreciation is calculated for the month in which the asset is disposed of. This approach is followed in order to offset the calculation of depreciation from the first month of acquisition. The proceeds on the disposal of the asset are recorded on the Transact sheet when the disposal transaction is recorded. The difference between this amount and the net carrying value of the asset (historical cost or gross carrying value less accumulated depreciation) constitutes the profit or loss on the disposal of the asset.
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Note: If an asset is scrapped, the asset can be removed from the fixed asset register by recording a disposal type transaction on the Transact sheet and entering a nil value in the Proceeds column (column I).
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All the depreciation calculations are split between depreciation based on the historical cost of an asset and depreciation based on the revaluation of an asset. This is an important point to note because only the depreciation based on the historical cost of an asset is allocated as an expense to the income statement. The depreciation based on the revaluation of an asset is debited against the revaluation reserve that is created when a revaluation surplus results from the revaluation of an asset. The revaluation reserve is therefore written off over the lifetime of the asset as part of the depreciation journals. Note: The depreciation based on the revaluation of an asset will not necessarily contain a value immediately after the revaluation transaction has been recorded. If the new gross carrying value of the asset is less than the historical cost of an asset, depreciation on the revaluation will only come into effect once the historical cost of the asset has been fully depreciated. If an asset has however been revalued at a value that is greater than the historical cost which means that the new gross carrying value exceeds the historical cost of the asset, depreciation on the revaluation will be calculated from the date of the revaluation transaction.
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Note: When an asset is acquired, depreciation is calculated and written off from the month in which the addition falls. When an asset is disposed of, depreciation is calculated up to the month before the date of the disposal. When an asset is revalued, the effect of the revaluation is taken into account from the month in which the revaluation transaction falls. In terms of the automated journal report, the first two journal entries relate to the depreciation on the historical cost of assets and the depreciation based on the revaluation of assets. Just like the other journal entries, the depreciation journals are based on the asset categories that are created on the Set-up sheet. Users are therefore able to specify a separate depreciation account for each asset category. Note: If you want to process depreciation journals on a monthly basis, make sure that you select the MTD option from the list box in cell E2 on the Journals sheet. If you select the YTD option from this list box, all depreciation calculations will be based on a year-to-date basis. Tax Allowances All the tax allowance and tax value calculations in this template are automated. All tax values are calculated based on the historical cost of an asset and the appropriate tax allowances are calculated based on the difference between the historical cost of assets and the residual values that are specified when recording transactions on the Transact sheet. The tax allowance rates are determined based on the tax code that is linked to an asset on the Assets sheet and the annual tax rates that are specified for the appropriate tax code on the Set-up sheet. Note: No journals are processed as a result of tax values or tax allowance calculations. These calculations are included in the template in order to include the tax values of all assets in the fixed asset register and to facilitate the calculation of deferred tax assets and liabilities. Deferred Taxation Deferred tax asset and liability balances are calculated based on the difference between the tax values of assets and the net carrying value of assets based only on the historical cost of the assets. Depreciation based on the revaluation of assets should not be allocated to the income statement and therefore also have no effect on deferred tax calculations. All asset revaluation transactions are therefore ignored for deferred tax purposes. Note: If an asset is not depreciated, the asset will also not form part of the deferred tax calculations because the difference between the tax and accounting treatment of the asset is permanent and not temporary as is required in terms of the principles of deferred taxation. The income tax rate that is specified in cell C9 on the Set-up sheet is used for all deferred taxation calculations. If this rate is amended, all deferred tax calculations are updated automatically. A rate adjustment journal has however not been included in the automated journals and we therefore recommend that users calculate and adjust deferred tax asset and liability balances independently from the template calculations. Note: The effect of the rate change can however be determined by saving a new version of the template before changing the income tax rate, changing the rate and comparing the deferred tax balances between the new and old versions of the template.
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Template Settings
The functionality that has been included in this template uses data validation and named cell ranges in order to validate all user input and to produce the reports that form part of this template. Most of the formulas that are used in this template are based on named cell ranges that include the first 1,000 rows on the Assets and Transact sheets. When the number of transactions that you've recorded on these sheets reaches this limit, you will therefore have to extend the default number of rows in order to include all your entries in the template calculations. The named cell ranges can be extended by accessing the main Insert menu, selecting Name, and selecting Define in order to open the Define Name dialog box. The calculations that include the transactions on the Assets and Transact sheets are all based on the "Records" named range. This named cell range includes a default value of 1,000 - you can therefore extend the number of transactions that are included in the template calculations by simply entering a new value for this named range and clicking the OK button. The data validation features that are used to validate user input on the Assets and Transact sheets have been implemented in the first 1,000 rows on these sheets. Before you reach this limit, you can simply copy one of the blank rows before row 1,000 and paste the cells in this row into the required number of additional rows. This will result in all the data validation features being copied to the target cell range.
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Asset Classes Code Description LB Land & Buildings PM Plant & Equipment CE Computer Equipment OE Office Equipment FF Furniture & Fixtures MV Motor Vehicles ZZ End of list Asset Categories Code Class LBU01 LB PPM01 PM PPS02 PM EQP01 PM EQS01 PM SMA01 PM CHW01 CE CSW01 CE OFE01 OE FFX01 FF MVH01 MV ZZ End of list Tax Codes Code App A Yes B No C Yes D Yes E Yes F Yes G Yes H Yes I Yes J Yes ZZ End of list
Description Land & Buildings Main Production Plant Secondary Plant Primary Equipment Secondary Equipment Small Assets Computer Hardware Computer Software Office Equipment Furniture & Fixtures Motor Vehicles
Cost BS-101 BS-102 BS-103 BS-104 BS-105 BS-106 BS-111 BS-112 BS-121 BS-131 BS-142
Acc Depr BS-151 BS-152 BS-153 BS-154 BS-155 BS-156 BS-161 BS-162 BS-171 BS-181 BS-192
Depr IS-401 IS-402 IS-403 IS-404 IS-405 IS-406 IS-411 IS-412 IS-421 IS-431 IS-442
Revalue BS-801 BS-801 BS-801 BS-801 BS-801 BS-801 BS-801 BS-801 BS-801 BS-801 BS-801
Impairment IS-457 IS-457 IS-457 IS-457 IS-457 IS-457 IS-457 IS-457 IS-457 IS-457 IS-457
Profit IS-408 IS-408 IS-408 IS-408 IS-408 IS-408 IS-408 IS-408 IS-408 IS-408 IS-408
Def Tax BS BS-750 BS-750 BS-750 BS-750 BS-750 BS-750 BS-750 BS-750 BS-750 BS-750 BS-750
Def Tax IS IS-610 IS-610 IS-610 IS-610 IS-610 IS-610 IS-610 IS-610 IS-610 IS-610 IS-610
Description Plant & Equipment - General Plant & Equipment - Special Buildings Small Assets Computer Equipment - Hardware Computer Equipment - Software Office Equipment Furniture & Fixtures Motor Vehicles No Tax Allowance
Year 1 % 20.0% 50.0% 5.0% 100.0% 33.3% 50.0% 25.0% 16.7% 20.0% 0.0%
Year 2 % 20.0% 30.0% 5.0% 0.0% 33.3% 50.0% 25.0% 16.7% 20.0% 0.0%
Year 3 % 20.0% 20.0% 5.0% 0.0% 33.3% 0.0% 25.0% 16.7% 20.0% 0.0%
Year 4 % 20.0% 0.0% 5.0% 0.0% 0.0% 0.0% 25.0% 16.7% 20.0% 0.0%
Year 5 % 20.0% 0.0% 5.0% 0.0% 0.0% 0.0% 0.0% 16.7% 20.0% 0.0%
5Y Total 100.0% 100.0% 25.0% 100.0% 100.0% 100.0% 100.0% 83.3% 100.0% 0.0%
AF 1 0 1 1 1 1 1 1 1 1
Input Error Codes Code Reason E1 Duplicate asset number. E2 Asset category does not exist. E3 Asset number does not exist. E4 Transaction type is blank or invalid. E5 Duplicate asset additions recorded. E6 Invalid transaction amount for the selected transaction type. E7 Invalid asset lifetime for the selected transaction type. E8 Invalid residual value for the selected transaction type. E9 Invalid proceeds from disposal of asset. E10 Asset acquisition not recorded. E11 Tax Code does not exist.
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YTD To 2/28/2013 Acquisition Date 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 9/10/2008 3/17/2009 6/12/2010 8/15/2012 1/20/2013 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 10/12/2008 11/23/2009 2/20/2010 8/15/2010 12/20/2012 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 7/20/2007 5/30/2010 8/2/2007 7/20/2007 6/20/2012
MTD From 2/1/2013 Last Trn Date 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 2/12/2013 3/1/2012 3/1/2012 3/1/2012 3/1/2012 8/15/2012 1/20/2013 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 12/20/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 3/1/2012 5/30/2012 6/20/2012
MTD To 2/28/2013 Current Trn Last PY Trn Last PM Trn Date Date Date 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 2/12/2013 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 9/10/2008 3/1/2012 3/1/2012 3/17/2009 3/1/2012 3/1/2012 6/12/2010 3/1/2012 8/15/2012 8/15/2012 1/20/2013 1/20/2013 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 10/12/2008 3/1/2012 3/1/2012 11/23/2009 3/1/2012 3/1/2012 2/20/2010 3/1/2012 3/1/2012 8/15/2010 3/1/2012 12/20/2012 12/20/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 7/20/2007 3/1/2012 3/1/2012 5/30/2010 3/1/2012 3/1/2012 8/2/2007 3/1/2012 5/30/2012 7/20/2007 5/30/2012 6/20/2012 6/20/2012 Disposal Date 2/12/2013 5/30/2012 Proceeds on Disposal 150,000 41,000 Historical Cost 1,500,000 120,000 200,000 250,000 915,000 500,000 400,000 260,000 295,000 750,000 422,200 660,450 354,600 12,500 70,000 15,000 3,420 65,000 15,000 1,500 42,200 36,900 49,950 113,130 6,890 19,100 36,900 40,000 18,999 3,600 12,400 5,100 8,200 6,600 2,100 3,400 5,150 12,800 252,200 288,500 Active Lifetime 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00 6.00 6.00 3.00 3.00 3.00 4.00 4.00 2.00 5.00 Active Res Value 5,000.00 22,000.00
Description Factory Land & Buildings Aquino V40 X 1 (Melda control) Aquino LTC-10 x 1 V25 Machining centre x 1 Supertech Grinder Mod G30A-50 x1 Aquino V40 Cnc Mill LTC-20B Cnc Turning Centre Leaderway 450 M/centre Leaderway V650 CNC Supertec Cnc Angular Wheel Grinder Aquino T7 CNC Machine Aquino T7M Briquetting Press Starrag -Triple Copy Mill Churchill - RH8 Shaver Sandmill Collet Chuck Toyota FG 1.8 Ton Forklift Hydrovane 170 Air Compressor Kraft Vertical Bandsaw Surface Grinder IM4 Engraver Yun Shuen 4Hkv Std Milling Machine 37KV Compressor Pollard 8 Spindle Centre Bore IM4 Engraver RH8 Hobbing Machine (ex CME) ST Drill Sharp Slib8n 4-30 Office Chairs (5) Office Desks (5) Air conditioner Panasonic Dell Desktops (5) Dell Laptop HP Laser Printer Nashua Copier Nashua Copier Microsoft Office 2010 Colt Rodeo 3.0(1) Toyota Hilux 3.0
Category LBU01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 PPM01 EQP01 EQP01 EQP01 EQP01 EQP01 EQP01 EQP01 EQP01 EQP01 EQP01 EQP01 FFX01 FFX01 FFX01 CHW01 CHW01 CHW01 OFE01 OFE01 CSW01 MVH01 MVH01
Class LB PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM PM FF FF FF CE CE CE OE OE CE MV MV
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Description Factory Land & Buildings Aquino V40 X 1 (Melda control) Aquino LTC-10 x 1 V25 Machining centre x 1 Supertech Grinder Mod G30A-50 x1 Aquino V40 Cnc Mill LTC-20B Cnc Turning Centre Leaderway 450 M/centre Leaderway V650 CNC Supertec Cnc Angular Wheel Grinder Aquino T7 CNC Machine Aquino T7M Briquetting Press Starrag -Triple Copy Mill Churchill - RH8 Shaver Sandmill Collet Chuck Toyota FG 1.8 Ton Forklift Hydrovane 170 Air Compressor Kraft Vertical Bandsaw Surface Grinder IM4 Engraver Yun Shuen 4Hkv Std Milling Machine 37KV Compressor Pollard 8 Spindle Centre Bore IM4 Engraver RH8 Hobbing Machine (ex CME) ST Drill Sharp Slib8n 4-30 Office Chairs (5) Office Desks (5) Air conditioner Panasonic Dell Desktops (5) Dell Laptop HP Laser Printer Nashua Copier Nashua Copier Microsoft Office 2010 Colt Rodeo 3.0(1) Toyota Hilux 3.0
Tax Cost 1,500,000 120,000 200,000 250,000 915,000 500,000 400,000 260,000 295,000 750,000 422,200 660,450 354,600 12,500 70,000 15,000 3,420 65,000 15,000 1,500 42,200 36,900 49,950 113,130 6,890 19,100 36,900 40,000 18,999 3,600 12,400 5,100 8,200 6,600 2,100 3,400 5,150 12,800 252,200 288,500
Impairment (200,000) -
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Description Factory Land & Buildings Aquino V40 X 1 (Melda control) Aquino LTC-10 x 1 V25 Machining centre x 1 Supertech Grinder Mod G30A-50 x1 Aquino V40 Cnc Mill LTC-20B Cnc Turning Centre Leaderway 450 M/centre Leaderway V650 CNC Supertec Cnc Angular Wheel Grinder Aquino T7 CNC Machine Aquino T7M Briquetting Press Starrag -Triple Copy Mill Churchill - RH8 Shaver Sandmill Collet Chuck Toyota FG 1.8 Ton Forklift Hydrovane 170 Air Compressor Kraft Vertical Bandsaw Surface Grinder IM4 Engraver Yun Shuen 4Hkv Std Milling Machine 37KV Compressor Pollard 8 Spindle Centre Bore IM4 Engraver RH8 Hobbing Machine (ex CME) ST Drill Sharp Slib8n 4-30 Office Chairs (5) Office Desks (5) Air conditioner Panasonic Dell Desktops (5) Dell Laptop HP Laser Printer Nashua Copier Nashua Copier Microsoft Office 2010 Colt Rodeo 3.0(1) Toyota Hilux 3.0
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