Reviewing ARO Processing Results

PeopleSoft Asset Management delivers the following inquiries by which to review ARO processing results:

Expense Schedule
Expense Schedule by Period

Expense Schedule Page

Use the Expense Schedule page (ARO_EXP_SCHED_YR ) to view the ARO-related accretion and depreciation expense for an asset by year to verify results

Navigation

select Asset Management, then select Asset Transactions, then select Asset Disposal, then select ARO Expense Schedule, then select Expense Schedule

Image: Expense Schedule Page

This example illustrates the fields and controls on the Expense Schedule Page. You can find definitions for the fields and controls later on this page.

The schedule of expenses related to asset retirement obligations includes accretion expense for the liability and depreciation expense for the associated asset retirement cost. If the ARO liability has been settled, the ARO Settlement and associated fiscal year appear.

ARO Liability Balance

Displays the resulting calculation for the asset ID: (Initial Measurement +/- Re-measurements or settlements) + Accretion Expense.)

Fiscal Year

Select the fiscal year for which you want to review resulting values for the asset.

Period

Enter the period for which you want to review resulting values for the asset.

Calculate Liability Balance

Click this button to calculate the ARO liability balance as of the selected fiscal year and period.

ARO Expense Schedule

View the Accretion, Depreciation, and Total Expense related to ARO for the asset by fiscal year. You can click the Fiscal Year link to access the expense detail for the entire year.

Expense Schedule by Period Page

Use the Expense Schedule by Period page (ARO_EXP_SCHED_PD) to view the ARO-related accretion and depreciation expense for an asset by period to verify results.

Navigation

select Asset Management, then select Asset Transactions, then select Asset Disposal, then select ARO Expense Schedule, then select Expense Schedule by Period

Image: Expense Schedule by Period Page

This example illustrates the fields and controls on the Expense Schedule by Period Page. You can find definitions for the fields and controls later on this page.

ARO Year Liability Balance

Displays the resulting calculation for the asset ID: (Initial Measurement +/- Re-measurements or settlements) + Accretion Expense.)

Year

Select expense schedule year.

Get Expense Schedule

Click this button to populate or refresh the ARO Expense Schedule and ARO Settlements data for the selected year.

ARO Expense Schedule

Year

Displays the selected year for viewing expense schedule detail.

Period

Displays the calendar periods within the selected year for which data exists.

Accretion Expense, Depreciation Expense, and Total Expense

Displays the Accretion, Depreciation, and Total expenses for each period of the selected year.

Accretion Detail

Click the Accretion Detail icon to view the accretion expense detail by sequence number for the period. The sequence field represents the ARO sequence number that is used to identify incremental liability incurred subsequent to the initial measurement.

Settling the Asset Retirement Obligation

Asset retirement obligations can be settled partially or in full. When an asset is retired and the asset retirement obligation is settled, the difference between the asset retirement obligation liability and the amount actually incurred is to be recognized as either a gain or loss. If the actual cost is greater than the ARO liability, a loss is recognized, and if the actual cost is less than the asset retirement obligation liability, a gain is recognized.

Use the Retire/Reinstate Asset component or the Disposal Worksheet component to record the settlement of asset retirement obligations.

See Retire Assets Page

See Initiating Asset Retirement Using the Disposal Worksheet

Accounting Entties for Settlement of Asset Retirement Obligation

The following tables present the scenarios for accounting entries of ARO Settlement:

Settlement of ARO Without Recognized Gain or Loss:	Debit	Credit
ARO Liability	XXXX
ARO Settlement		XXXX

Settlement of ARO with Recognized Gain	Debit	Credit
ARO Liability	XXXX
ARO Settlement		XXXX
Gain on Settlement of ARO		XXXX

Settlement of ARO with Recognized Loss	Debit	Credit
ARO Liability	XXXX
ARO Settlement		XXXX
Loss on Settlement of ARO	XXXX

Removal of Capitalized ARC	Debit	Credit
Accumulated Depreciation	XXXX
Long-lived Asset (ARC)		XXXX

Reporting for Asset Retirement Obligations

PeopleSoft Asset Management delivers the following ARO reports:

Asset Retirement Obligations (AMARORPT01 BI Publisher report) – This report identifies the beginning and ending aggregate carrying amount of an asset retirement obligation and provides the information to assist in preparing disclosures in accordance with Financial Accounting Standards.
ARO Pending Settlement (AMARORPT02 BI Publisher report) – This report identifies outstanding asset retirement obligation settlements and provides Asset Managers and Asset Accountants with visibility to those assets retired but pending remediation.

ARO Reports Page

Use the ARO Reports page (AM_ARO_RPT_RQST) to run reports that provide ARO compliance information.

Navigation

select Asset Management, then select Financial Reports, then select Cost and Depreciation, then select ARO Reports, then select ARO Reports

Image: ARO Reports Page

This example illustrates the fields and controls on the ARO Reports Page. You can find definitions for the fields and controls later on this page.

Select from any or all of the report request parameters to produce the ARO reports by business unit, book name, and range of asset IDs. You can limit the report period by entering a range of fiscal years and periods or select any date range.

You can further limit your resulting report data by specifying any of the ChartField values, including the Project Costing ChartFields.