Fixed Assets

Fixed Assets

This article talks about uoloading and managing your fixed asset schedule.

After you have approved the Financial Documents and navigate to the Fixed Assets tab, you are shown the New, Continued or Disposed assets that have been picked up for the YA (Year of Assessment) from the Fixed Asset Register (FAR).                        


Fixed assets that are purchased after the Basis Period of the Assessment will not be picked up by the system. They will however be picked up when the document is uploaded for the next year.

Adding New Fixed Assets

The user in the role of the Preparer can add assets apart from the ones automatically picked up by the system. To add an asset, follow the steps below,
  1. Click on the Fixed Assets tab in the Workspace tab of your assessment                                                                                                                  
  2. Click on the red + button on the bottom right of the screen. This opens up a form as shown below                                                                      
  3. Here is a description of the fields in the form,                                                                                                                                                        
    1. Status - You can choose New, Continue or Disposed, for new, continued or disposed assets respectively.
    2. Description - Description of the Asset as appears in the Draft Computation 
    3. Purchase Date - Date of purchase for the asset can be chosen from the calendar that comes up on clicking the field
    4. Purchase Cost 
    5. Applicable Section -The section that the asset belongs to. The options available are shown in the picture below,                                 
    6. Working Life - Current working life of the asset
    7. YA of Purchase – Year of Assessment of this purchase
    8. You can tag the asset to be Defer or Hire Purchase and/or Productivity Innovation Credit (PIC). This tagging will have impact on the IA and AA values listed below. The system follows the current IRAS guidelines for computing Capital Allowance.
    9. If Hire Purchase checkbox is selected, you are required to enter the HP schedule which includes YA of  Principle amount and the Principle Amount.
    10. Working Life b/f - It stands for Working Life Before. Working life prior to adding the asset. This is for a continued asset. In the case of a new asset that is being added, Working Life b/f will carry the same value as Working Life.
    11. TWDV b/f - It stands for Tax Written Down Value Before. This field is for a continued  asset as well. For a new asset, TWDV b/f will carry the same value as Purchase Cost.
    12. Initial Allowance (IA) - It is the allowance granted in the year the expenditure is incurred and is calculated based on Working Life and Purchase Cost.
    13. Annual Allowance (AA) - It is the recurring allowance given every year and is calculated based on Working Life and Purchase Cost.
    14. Capital Allowance (CA) - This is the sum of IA and AA.
    15. Working Life c/f - It stands for Working Life Carried Forward. This is the value obtained by deducting 1 year from Working Life b/f.
    16. TWDV c/f - It stands for Tax Written Down Value Carried Forward. This value is obtained by deducting Capital Allowance from TWDV b/f. 
    17. Sales Proceeds - This field is valid only for Disposed assets. Sales Proceeds is the sale value of the disposed asset.
    18. Balancing Allowance (BA) - This field is valid only for Disposed assets. It is the difference in the values of Sales Proceeds and Capital Allowance of the disposed asset when the CA is greater than Sales Proceeds.
    19.  Balancing Charge (BC) - This field is valid only for Disposed assets. It is the difference in the values of Sales Proceeds and Capital Allowance of the disposed asset when the Sales Proceeds is greater than the CA.                                                                                                                                   
Once all the fields are populated, click on SUBMIT button at the bottom of the screen. This will create a new FA entry visible under the FA tab.

Editing a Fixed Asset

To edit an existing FA, click on the FA. A screen as below pops up,


  1. Click on the CHANGE button at the bottom of the screen  
  2. A form with all the details of the asset in editable format is shown. You can click on and edit any of the fields. The list of fields is shown in the section above under Adding New Fixed Assets.
  3. One the required fields have been edited, click on SUBMIT button at the bottom of the page.                                                                      
Editing the FA fields will have an effect in the Draft Tax Computation. In order to see the changes, click on APPROVE ALL button again in the Workspace to regenerate the draft tax computation.

 



 

    • Related Articles

    • Draft Tax Computation

      The Draft tax computation is generated when you as a user click on the APPROVE ALL button in the Workspace tab.  Upon clicking the button, the system prompts the user about any validation errors that are present in tallying ledger items to P/L items. ...

    • Financial Documents Required

      In order to produce the tax computation, AI.Taxassist system requires a few financial documents from your client. The documents required are listed below, Note: General Ledger should only contain P/L items. No items from Balance Sheet should be ...

    • Tax Categories - Non Deductibles and Non Taxables

      AI.TaxAssist uses machine learning to cognitively suggest the non-deductibles and non-taxables in the workspace entries. This classification is marked under the Category column in the Workspace. Non-deductibles are marked on Expense entries. If an ...

    • Xero Financial Statements

      This document describes the steps to download the PL, GL and FA statements from your Xero account. The general format for the statements from Xero is also listed here. Files in this format will be read in by the AI.TaxAssist tool when you choose ...

    • Workspace

      What does the Workspace show? - Please refer to the article Tax Classifications - Basic Features. What is the Type column in the Workspace? - Type column indicates if the ledger is an Income or an Expense. The Staff/Preparer has the right to change ...