GASB 34 Asset Accounting

Oracle cloud can simultaneously post transactions to multiple ledgers using different bases of accounting.

This feature allows fixed assets to be expensed for fund accounting in the primary ledger and also capitalizes and depreciates these fixed assets as required by GASB 34 in a secondary ledger.

To support GASB 34 asset accounting, two fixed assets books are created. The corporate book is associated with the primary ledger using modified accrual basis. When assets are purchased, they are expensed to the proper capital outlay accounts and those purchases are subject to budgetary control. In the secondary ledger, full accrual is used, and those assets are placed in an asset account. A Mass Additions process is run to select all eligible asset purchases and automatically create the assets in Fixed Assets. Transactions are reviewed and added to the fixed asset register and posted to the corporate book.

A secondary tax book is defined and associated with the secondary ledger using full accrual basis. This tax book is synced with the corporate book through a process that copies additions, adjustments, and retirements from the corporate book. Since assets in the corporate book are expensed on a modified accrual basis, no journal entries from the corporate book are posted to the primary ledger. Instead, the journal entries occur in the secondary full accrual ledger.

For details on how to configure Fixed Assets for GASB 34 Accounting, please read the GASB 34 Asset Accounting with Oracle Financials Cloud White Paper (Doc ID 2132255.1).