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Robust functionality for the accounting and tracking of all retirement obligation types in compliance with ASC 410-20.
PowerPlan’s ARO solution provides out-of-the-box functionality to manage the entire ARO workflow, from initial recognition to closure. Automate all calculations and necessary journal entries for the liability, asset retirement costs (ARC), liability accretion and ARC depreciation.
Lower labor time and costs while reducing accounting risk.
ARO Tracking
Tracks and calculates all entries for Site, Mass and Component AROs.
Reporting
Robust, out-of-the-box reports to support financial disclosures and analysis on liability span, cash flows, layer and stream details, roll-ups, month-end and net value.
WO Settlements
Applies work order costs directly to ARO liabilities for settlements.
Layer Adjustments
Re-calculates AROs to account for changes in cost and timing estimates.
Regulatory Accounting Entries
Automatically reclasses accretion and depreciation expense to deferred GL accounts.
ARO Forecasting
Calculate and report estimates of accretion, settlement and liability balances into future periods.
PowerPlan’s ARO module enables greater accuracy, flexibility and efficiency while lowering the risks associated with spreadsheets and manual processes.
AROs can be processed on specific sites or on mass property using mortality statistics. For large decommissioning projects like nuclear units, the module can calculate based on multiple cash flow scenarios and probabilities and calculate layers as estimates change. “Single Point” Weighted Average Rate Type AROs can be mass re-estimated within a single application screen to improve your team’s efficiency.
The module – designed to operate as part of the integrated PowerPlan Fixed Assets suite or as a standalone solution – calculates accretion and depreciation monthly and generates necessary journal entries throughout the lifecycle of AROs.