Canadian Asset Amortization Tool
Frequently Asked Questions
Do I have to record every individual asset that my clients possess before I can use C.A.A.T.?
No. You can enter a single asset record for each asset group that represents the total of the assets that would belong to the group at beginning of the starting fiscal period. New asset records can then be added as they are acquired. As historical assets that are contained in the group total are disposed, use the Create Child feature to split the disposed asset from the total record. The child asset can then be disposed of in the usual manner.
My client’s business has multiple profit areas. How should I setup my client's asset file?
When a business has 2 or more profit areas and assets may be transferred between these profit areas (no sale takes place), each profit area can be setup as a division within a single client file. This allows assets to be easily transferred between divisions.
My client has several businesses. Can I keep all of my client’s assets in a single client asset file?
Yes. The use of divisions is not restricted to divisions of a single enterprise. Divisions can also be used to contain individual businesses, each with their own fiscal year-end. In this case, an asset that is being transferred between divisions (businesses) should be sold/disposed by the originating division and the asset then purchased/acquired by the division that now has possession of the asset.
I have just finished building a client asset file. How can I be sure that I have entered the data correctly?
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Once all of the assets have been recorded, print the Summary Report. |
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The Balance Beginning of Period in the Cost section should agree with the purchase cost from the working papers of fixed asset ledger that was used to provide the source data. |
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The Balance Beginning of Period in the Accumulated Amortization section should agree with the opening amortization from the working papers of fixed asset ledger that was used to provide the source data. |
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If any discrepancies are found, print the Detailed Schedule or Asset Listing to identify the asset record that has been recorded incorrectly. |
What is the procedure for converting Tax-Only client files to Accounting client files?
Change the Division Type from Tax-Only to Accounting and Save the new Division information.
Create the required new Asset Groups.
Do the following for each Asset:
Assign the Asset to an Asset Group and save the changed Asset record.
Choose “Opening Amortization” from the Change menu.
Enter the Opening Amortization Amount.
This amount may be entered manually or it can be calculated by the program by clicking the Calculate Opening button.
Click the Save button to save the opening amortization information.When all of the asset records have been moved from the Tax-Only group to one of the new Asset Groups, the Tax-Only group may be deleted.
Prepare reports and balance the Opening Amortization amounts. The Opening Amortization Amount maybe edited until the next Year-End processing is completed.
Can I amortize capital grants?
With the release of the December 5th, 2000 update, C.A.A.T. was enhanced with the ability to work with negative cost assets. This feature can be used to amortize capital grants. These grants may be recorded as a separate item from the assets that they were used to purchase. A capital grant may also be setup as a "child" of the asset that it is associated with.
Can I keep track of capital leases?
The ability to track capital leases was provided with the release of the C.A.A.T. Version 3.