Accounting Principles: Calculation Details

Accounting Principles for Asset Retirement Obligations

• Calculation details for asset retirement obligations (AROs) vary depending on the accounting principle, such as U.S. GAAP or German HGB
• In SAP GUI, use the relevant options in the toolbar for transaction details and choose Show Details for the relevant accounting principle
• Calculation steps track basic calculations, including compounding and discounting of a base amount for a given period (defined using the base date and target date)

Calculation Steps

• A calculation step represents a sequence of calculations for a settlement item
• Each calculation step has a description identifying the type of calculation involved
• Main data for a calculation step includes:
  • Number of Calculation Step: sequence number of a calculation step for a settlement item
  • Calculation Step Description: identifies the type of calculation step
  • Base Date: start date of the calculation period
  • Target Date: end date of the calculation period
  • Base Amount: value at the start date
  • Target Amount: value at the end date

ARO Valuation and Accounting Principles

• Calculations for ARO valuation involve multiple calculation steps, such as inflation calculations and discounting
• The purpose of calculations is to determine ARO provisions that must be set up at a certain point in time
• Accounting principles, such as IFRS, GAAP, or HGB, determine the calculations and adjustments of provisions
• ARO accounting principle-specific header data, such as interest and inflation rate keys or calculation methods, are stored as header data and do not change during the ARO lifetime

Feature Comparison for SAP GUI and Manage Asset Retirement Obligations App

• In SAP S/4HANA, you can manage asset retirement obligations using SAP GUI transactions and the Manage Asset Retirement Obligations app
• The app is used for creating, deleting, editing, and locking/unlocking AROs, as well as working with underlying objects

This quiz covers specific calculation details related to accounting principles, including SAP GUI and U.S. GAAP guidelines.