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Questions and Answers
What is the purpose of entering a price key date for cost estimation in ARO valuation?
To determine the cost estimation amount valid on the transaction date
What happens when you release the transaction in SAP S/4HANA for accounting integration?
The application determines the transaction processing key date automatically and creates necessary financial postings
How can you adjust an existing cost estimation for an ARO?
By creating a new cost estimation plan (CEP) or updating an existing one
What is the purpose of checking calculation details for each relevant accounting principle?
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What is used to calculate the equivalent cost estimation amount valid on the transaction date?
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What should you do if you have cost estimation amounts determined using a price index valid on the transaction date?
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What is the result of releasing the transaction in SAP S/4HANA?
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How can you access the transaction /FOM/AM02 in SAP GUI?
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What is the benefit of checking calculation details for each accounting principle?
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What is the purpose of cost estimation in ARO valuation?
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What is the role of the general inflation rate key in ARO valuation?
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Study Notes
ARO Cost Estimation
- ARO asset created in 2006, with two cost estimation items: $60,000 with a settlement date of 31.12.2035 and $80,000 with a settlement date of 31.12.2040
- In 2011, parts of the underlying object were retired: 10% of the first cost estimation item and 25% of the second cost estimation item
Retirement and Cost Estimation Adjustment
- The overall size of retirement can be calculated using item-level cost estimation values and corresponding percentage rates
- The overall size of retirement can be manually set, e.g., to 20% in this example
- Adjusting a cost estimation is possible in SAP GUI and in the Manage Asset Retirement Obligations app
ARO Valuation and Interest-Based Updates
- Interest-based updates are usually carried out as mass adjustments for all AROs
- ARO valuation requires cost estimations valid on the transaction date
- The application calculates the equivalent cost estimation amount valid on the transaction date using the general inflation rate key of the ARO
Transaction Processing
- Before releasing a transaction, calculation details can be checked for each accounting principle
- Releasing the transaction creates necessary financial postings using SAP S/4HANA for accounting integration
- The application determines the transaction processing key date automatically, storing a timestamp and user ID for the transaction
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Description
This quiz is about accounting for asset retirement obligations (ARO) according to IFRS. It involves calculating the cost estimation and settlement dates for ARO assets. Understand how to customize and represent ARO assets.
