Fund-Based Accounting

Use fund-based accounting to revalue assets as per the UK local authority or Statement of Recommended Accounting Practice (SORP) requirements.

Account for the use of capital assets in operation in the capital fund or capital adjustment account.

Oracle Assets:

• Automatically moves the asset cost amortization, impairment loss, and other cost write-offs charged to the income and expenditure account, from the general fund to the capital fund or capital adjustment account.

• Charges the amortization of revaluation reserve directly to the capital adjustment account.

• Creates the following additional accounting entry for any charge to the income and expenditure account:

  • Dr Capital Fund or Capital Adjustment Account

  • Cr General Fund

Note: When using fund-based accounting, you can use only the net book value (NBV) revaluation method.

The treatment of upward revaluation after an impairment loss or downward revaluation differs from non-fund-based net book value revaluation.

Assets lets you perform an upward revaluation linked to the asset's prior impairment or downward revaluation. In this case, Assets:

• Credits to the profit and loss account the increase in the carrying cost to the extent of the impairment loss or revaluation loss (adjusted for subsequent depreciation) that was previously debited to the profit and loss account.

• Credits the balance, if any, to the revaluation reserve account.