Forms
BC Form:
If the subsidiary is acquired through business combination, then the user has to fill BC form.
BC form is filled in by the acquirer on the date of acquisition.
All the fields should accept the value ‘0’.
The FV can also be negative.
Also, the BC form can also be saved as a draft. In draft state, the status of the form will be “In Progress”. Only if the journal entry is passed, the status will change to “Completed”.
Functionalities:
The user will be able to fill the form if and only if the COA mapping is completed. Otherwise, the user will be asked to fill the COA first before going forward to fill the forms.
The user should be able to add any supporting documents if any, which should be of 5MB max.
The tool should allow .xls, .doc or .pdf formats.
The journal entry in this form is displayed as follows:
In the BC – Schedule of net assets, if L3 and L4 correspond to an Asset, then the value should be debited if the value is positive and credited if the value is negative.
In the BC – Schedule of net assets, if L3 and L4 correspond to liability, then the value should be credited if the value is negative and debited if the value is positive.
Journal Entry - Rules:
For any journal entry, the debit and credit should sum up to zero.
All the values in the debit are positive and all the values in the credit are negative.
The user should also be able to add or edit the values in the journal entry.
On hover in the journal values, the user should be able to see the description of where this value came from.
For ex: If the user hovers the mouse on credit value, the tool should give a description that this value is fetched from the field “DTL on Transition.
Validations:
In the BC – Schedule of net assets, if L3 and L4 correspond to an asset, then the value should be positive.
In the BC – Schedule of net assets, if L3 and L4 correspond to liability, then the value should be negative.
Consideration paid – values should be only in positive or 0 – Non mandatory field.
Equity on date of acquisition – values only in positive or 0 – Non mandatory field.
The L3 and L4 values in this section will have the values where its corresponding L2 is “Equity” or “Other Equity”.
'Schedule of net assets' section should only display the L3 and L4 values of 'Assets' and 'Liabilities'.
Asset Register:
If the user selects “Yes” against FA Register, then the user will be navigated to the asset register page.
The asset register will also be frozen after the period of amendment.
Any change to the data in the asset register will not be allowed after the period of amendment.
The field structure of this page is as follows:
Date of assessment – Auto populated – The value will be the date of assessment
Asset number – Text box – String – The asset number of each asset should be registered
Asset Class – Drop down – Displays the L4 class in the drop-down list where its corresponding L2 is “non-current assets”
Asset Description – Text box – String – The description of the asset has to be entered – Non mandatory field.
Ex: Chair, table, Anna Nagar Building, etc.
Asset Location – Text box – Displays the location in which the asset is present – Non mandatory field.
Ex: Chennai, Bangalore, etc.
Nature of Assets – Drop down – The user selects if the asset is tangible, intangible or others
Incremental FV – Text box – Decimal – Fair value of the asset must be entered
Useful Life – Text box – Decimal – Enters the useful life of the asset in years
Depreciation Method – Drop down – Selects the depreciation method which will be used to calculate the depreciation of the asset.
Accumulate Depreciation – Text box – Decimal – Enters the accumulated depreciation till the date of transition – This is applicable only if the date of assessment < date of transition. Otherwise, the default value will be 0.
Residual % - Text box – Decimal – Enters the residual (Scrap) percentage - Should be minimum of 1%.
Residual Value – Text box – Auto calculated – Incremental FV * Residual %
Net book value – Text box – Decimal – Enters the net book value till the date of transition.
The user should be able to download and import data in the asset register using “Download Template” and “Import from Template” fields.
Validations:
Accumulated depreciation should always be less than Incremental FV
Date of assessment should be picked from Date of acquisition
Net book value = Incremental FV – Accumulated Depreciation
The Asset class should have a list of L4 where its corresponding L2 is “Non-Current Assets”.
The values in the FA Register should be auto populated in the “BC - Schedule of net assets” section.
Any changes to the values in the FV should be edited in the FA Register and it will be reflected in the table in “BC - Schedule of net assets”.
If an asset is deleted in the FA Register, then the asset should also be deleted in the “Schedule of net assets” section.
The user will also be able to add data in “Schedule of net assets” section.
When the user selects to have FA Register, then a link should be created for the user to open and edit the data as and when required.
The FA Register is editable till the “Period of amendment” which will be entered in the BC form.
After the period of amendment, the data in the form will be frozen and no further edit will be available for the user.
The user should be enabled with a link if the user selects to have FA Register and if the data is entered in the FA Register.
Investment/Further Investment Form:
Investment form is applicable for a subsidiary which is not acquired through BC.
Further Investment form is applicable if the user has increased the investment share.
The structure of investment of further investment form remains the same.
The user will be able to fill the form if and only if the COA mapping is completed. Otherwise, the user will be asked to fill the COA first before going forward to fill the form.
The field structure of this form is as follows:
Date of Investment – Date picker
Amount of investment – Text box – Decimal
Represented by Equity Section
L3 Classification – Drop down – L3 values where its corresponding L1 should be equal to Equity should be displayed.
L4 Classification – Drop down – L4 values corresponding to its L3 where its L1 should be equal to Equity should be displayed.
Acquisition date value in acquiree books – Text box – Decimal
Journal Entry - Rules:
For any journal entry, the debit and credit should sum up to zero.
All the values in the debit are positive and all the values in the credit is negative.
The user should also be able to add or edit the values in the journal entry.
On hover in the journal values, the user should be able to see the description of where this value came from.
For ex: If the user hovers the mouse on credit value, the tool should give a description that this value is fetched from the field “Amount of investment”.
Sale to MI:
Sale to MI form is applicable if any entity has sold a percentage of share to minority.
The user will navigate to the page through the “View” button under Forms in the Group Structure page.
The user will be able to fill in the form if and only if the COA mapping is completed. Otherwise, the user will be asked to fill in the COA first before going forward to filling in the forms.
The field structure of Sale to MI page is as follows:
Enter date of disposal – Date picker – Enters the date on which the shares are sold to MI
Pro rata investment value – Text box – Decimal – value cannot be negative
Profit/(Loss) recorded in standalone financials – Text box – Decimal
Profit will be entered in positive, and loss will be entered in negative
The minimum value this field can have is - (Pro rata investment value).
For ex: If the Pro rata investment value is 1000, then the Profit/(Loss) recorded in standalone financials can have a minimum value of -1000
Based on the values entered by the user in “Computing gain on disposal of group” section, the journal entries will be posted.
Debit – Pro rata investment value
Debit – Profit recorded in standalone financials
Credit – Adjustments to equity
L3 and L4 values will be selected by the user
Adjustment to equity – Text box – Decimal – Should be negative or zero
Journal Entry - Rules:
For any journal entry, the debit and credit should sum up to zero.
All the values in the debit are positive and all the values in the credit are negative.
Tag – Default value will be provided. If the user wishes to change the tag, it can be done using “Select HC label” drop down. It also has a custom option in the drop down wherein the user can enter their own tag.
When the user selects “Custom”, a text box will be enabled for the user to enter the value.
This user entered tag should be made available in all the forms
The user should also be able to add or edit the values in the journal entry.
Also, if the user wishes to add narration to the JE, the same can be done through the narration icon at the top right of the Journal entry section wherein a narration box will open up.
On hover in the journal values, the user should be able to see the description of where this value came from.
For ex: If the user hovers the mouse on credit value, the tool should give a description that this value is fetched from the field “Adjustment to equity”.
Memo Form:
If the user wants to record any other adjustments, then the same can be done via this page.
The user will post journal entries on this page.
The Narration field is used if the user wishes to record any narration to the JE.
Any supporting documents can be added using “Add Document” field.
Journal Entry - Rules:
For any journal entry, the debit and credit should sum up to zero.
All the values in the debit is positive and all the value in the credit is negative.
The user should also be able to add or edit the values in the journal entry.
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