Understanding PeopleSoft Asset Management in Global Settings

Using PeopleSoft Asset Management in Australia

PeopleSoft Asset Management provides the options to identify assets for and calculate deductions of expenditures on assets for research and development (R&D) based on aggregate values.

The system provides options to manage Australian tax credit allowances related to capital investment projects that include provisions for rebates (often referred to as credits).

The system provides the options to track and report on the usage of assets requiring changes in creditable purpose (CCP), assets that may be subject to goods and services tax (GST) or value-added tax (VAT), and capital gains taxes (CGT).

The system provides the functionality to perform "net-method" asset revaluation in accordance with Australian accounting standards (AASB1010 and AASB1041), which require crediting to related asset accounts the balance of accumulated depreciation at the date on which an asset is revalued.

Using PeopleSoft Asset Management in Canada

PeopleSoft Asset Management enables you to calculate depreciation for tax purposes in Canada under the terms of the Capital Cost Allowance (CCA) Reporting. In Canada, all depreciation is calculated on the pool or class of assets by using the rate that is prescribed by the Income Tax Act.

The CCA calculation consists of several components. To calculate CCA, the undepreciated capital cost (UCC) of assets at the beginning of the taxation year is determined, and acquisitions and dispositions during the year are added and subtracted to obtain the balance that can be depreciated. A percentage depreciation and CCA rate is applied to this UCC balance to determine the maximum amount that can be claimed. The CCA that is claimed is deducted from the beginning UCC to calculate the UCC at the end of the year. The final balance is used at the beginning of the following year.

Using PeopleSoft Asset Management in France

PeopleSoft Asset Management supports the specialized derogatory depreciation methods commonly used in France.

The system provides the reporting features necessary to track and report the French business tax at the asset book level and the asset profile level.

The system provides the functionality to perform asset revaluation as necessary.

Using PeopleSoft Asset Management in Germany

PeopleSoft Asset Management supports commonly used practices in Germany, including Staffel depreciation, a half-year prorate convention, geometric digressive depreciation, a parameter-driven automatic retirement process, and management of capitalization limits for low-value assets. In addition, PeopleSoft Asset Management provides reports to meet German statutory requirements.

Using PeopleSoft Asset Management in India

PeopleSoft Asset Management provides asset processing features that correspond to the tax reporting requirements established by the Indian Tax Depreciation Act of 1961. This local standard requires that assets are grouped within a defined tax block. Currently India identifies four asset tax blocks: buildings, furniture and fixtures, machinery and plant, and intangibles. Each block of assets is further assigned a tax groupor class, and each class maintains an individual tax rate. The Indian tax year is a fixed fiscal calendar starting April 1 and ending March 31. Tax depreciation is reported annually at the fiscal year to the tax authority per asset block.

The system takes into account the rules regarding the treatment of capital and operating leases by enabling you to designate them.

The system provides the Straight Line Percent depreciation method for India, which calculates depreciation based on rates, and useful life is calculated on cost, salvage value, and depreciation rate combined.

The system provides the India Asset Tax Register, which reports all booked transactions to show the cost, depreciation, and net book value of assets, as well as tax depreciation reporting options.

Using PeopleSoft Asset Management in Italy

PeopleSoft Asset Management enables you to produce a fixed-asset book, required by Italian regulations (article 16, D.P.R. 600/73), to record information regarding depreciable fixed assets. The fixed-asset book lists information that is relevant to fixed assets, including the date of purchase, original cost, accumulated depreciation (beginning of year balance), depreciation rate, year-to-date (YTD) depreciation (current year activity), retirement and disposal information, ending balance, and any revaluation and devaluation information in a particular fiscal year for either the economic or fiscal book. Most Italian business entities use an economic book to record depreciation that is not subject to fiscal constraints and a fiscal book to record specific rules and depreciation methods that are regulated by fiscal authorities.

Using PeopleSoft Asset Management in Japan

PeopleSoft Asset Management supports commonly used practices in Japan, including depreciation methods for fixed and leased assets, composite depreciation, and collateral assets. In addition, PeopleSoft Asset Management provides reports to satisfy tax reporting requirements.