asset schedule corality modeloff worked solution asset schedule

8/10/2019 Asset Schedule Corality ModelOff Worked Solution Asset Schedule

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Style Design Comment

Header 1 Header1

Header 2 Header2

Input 100 A user driven input

Demo 100 Values needed to demonstrate the principle i

Empty_cell A cell that is left intentionally blank to avoid t

Off-Sheet 100 A link to another worksheet to minimise the n

Total The sum of elements above, including sub-to

Unit / Info USD millions Explanatory text showing helpful information

Line Summary 100 The SUM() of everything to the right

Table Header Qtr Header of a table or of an off-sheet reference

Flag 1 Binary flag - set up as conditional formatting

Balance The closing balance of a control account


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a complete model would be dynamically coded or set-up differently

e risk of error

umber of inter-worksheet references (slow and risky)

tals

and the units/dimensions of the calculations

ather than a 'Style'
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Tutorial: Asset Schedule

Inputs

Inputs specific to the answerAsset details

Useable life Yr(s) 12 Yr(s)

Accounting depreciation (SL) % p.a. 8.33%Tax depreciation (DV) % p.a. 40.00%

Profile 2012 2013

Capex US$m 10.00 64.00

Inflation

Forecast % 3.00%

Tax

Year Year 2012 2013

Rate % 30.00% 30.00%

Inputs to support demonstrationTiming

Model start date Date 31-Dec-11

Constants

Days in year Days 365

Months per quarter Months 3

Months per year Months 12


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2014 2015 2016 2017 2018 2019 2020

69.00 99.00 89.00 39.00 34.00 23.00 29.00

2014 2015 2016 2017 2018 2019 2020

30.00% 30.00% 28.00% 28.00% 28.00% 28.00% 28.00%

This inputs page is set up to contain all the keybits of information provided in the question. Weare keeping it separate from the calculations tohelp promote transparency in line withinternationally recognised modeling standards.


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2021 2022 2023 2024 2025 2026 2027

69.00 99.00 89.00 39.00 34.00 23.00 29.00

2021 2022 2023 2024 2025 2026 2027

28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00%


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2028 2029

69.00 99.00

2028 2029

28.00% 28.00%


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CalculationsPeriod start

Period end 31-Dec-11

CountersYear YearYear counter #Num

Inflation % 3.00%

AssetsCapex (real) US$m 1,006.00

Capex (nominal) US$m 1,314.44

Accounting depreciationBalance b/f US$m

Capex US$m

Depreciation US$mBalance c/f US$m

Depreciation Year(s)

Periods to include #Num 12

% p.a.

Depreciation US$m 8.33% 831.50

Tax depreciationBalance b/f US$m

Capex US$m

Depreciation US$m

Balance c/f US$m

Depreciation

Depreciation US$m 40.00% 1,148.43

Deferred taxAccounting depreciation US$m

Tax depreciation US$m

Difference US$m

Tax rate % 30.00%

Deferred tax asset / (liability)

Balance b/f US$m

Movement due to tax rate US$m

Temporary differences US$m

Balance c/f US$m

Thethethat

The second challenge is inunderstanding of deferred tcalculate it. The deferred ta balance sheet is the resuldifferences, most easily sethe accounting and tax trea


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QuestionsQuestion 1

Start year Year 2012

End year Year 2021

Include? [1,0]Total nominal capex US$m 598.33

Answer: Selection B

Question 2

Target year Year 2017

Closing balance US$m 298.31

Answer: Selection A

Question 3

Target year Year 2019

Closing balance US$m 68.18

Answer: Selection D

Question 4

Difference US$m 2.19

Answer: Selection A

Question 5Target year Year 2028

Closing balance US$m (79.03)

(Note - a negative balance is a liability)

Answer: Selection B


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1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16 1-Jan-17 1-Jan-18 1-Jan-19

31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19

2012 2013 2014 2015 2016 2017 2018 20191 2 3 4 5 6 7 8

1.00 1.03 1.06 1.09 1.13 1.16 1.19 1.23

10.00 64.00 69.00 99.00 89.00 39.00 34.00 23.00

10.00 65.92 73.20 108.18 100.17 45.21 40.60 28.29

- 9.17 68.76 129.54 216.27 286.65 298.31 301.97

10.00 65.92 73.20 108.18 100.17 45.21 40.60 28.29

(0.83) (6.33) (12.43) (21.44) (29.79) (33.56) (36.94) (39.30)9.17 68.76 129.54 216.27 286.65 298.31 301.97 290.96

1 2 3 4 5 6 7 8

0.83 6.33 12.43 21.44 29.79 33.56 36.94 39.30

- 6.00 43.15 69.81 106.80 124.18 101.63 85.34

10.00 65.92 73.20 108.18 100.17 45.21 40.60 28.29

(4.00) (28.77) (46.54) (71.20) (82.79) (67.76) (56.89) (45.45)

6.00 43.15 69.81 106.80 124.18 101.63 85.34 68.18

4.00 28.77 46.54 71.20 82.79 67.76 56.89 45.45

0.83 6.33 12.43 21.44 29.79 33.56 36.94 39.30

4.00 28.77 46.54 71.20 82.79 67.76 56.89 45.45

(3.17) (22.44) (34.11) (49.76) (53.00) (34.20) (19.95) (6.15)

30.00% 30.00% 30.00% 30.00% 28.00% 28.00% 28.00% 28.00%

- (0.95) (7.68) (17.92) (32.84) (45.49) (55.07) (60.66)

- - - - 2.19 - - -

(0.95) (6.73) (10.23) (14.93) (14.84) (9.58) (5.59) (1.72)

(0.95) (7.68) (17.92) (32.84) (45.49) (55.07) (60.66) (62.38)

first big challenge in this solution is to getstraight line depreciation calculated in a waydoesn't require a giant table. See the next

testing yourax and how tox asset or liability on

lt of timingn in differences intment of

Once you have tracked the amount of the difference and thin the DTA / DTL, it becomes important to understand howbalance may change due to a change in the tax rate. If the

decreases, we would expect to see a reduction n the size oliability or asset. Here, we see that we initially had a 32.84which was 'reduced' by 2.19m due to the reduction in the ta


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1 1 1 1 1 1 1 110.00 65.92 73.20 108.18 100.17 45.21 40.60 28.29


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1-Jan-20 1-Jan-21 1-Jan-22 1-Jan-23 1-Jan-24 1-Jan-25 1-Jan-26 1-Jan-27

31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26 31-Dec-27

2020 2021 2022 2023 2024 2025 2026 20279 10 11 12 13 14 15 16

1.27 1.30 1.34 1.38 1.43 1.47 1.51 1.56

29.00 69.00 99.00 89.00 39.00 34.00 23.00 29.00

36.74 90.03 133.05 123.20 55.60 49.93 34.79 45.18

290.96 285.33 325.50 397.60 449.58 430.17 406.42 370.73

36.74 90.03 133.05 123.20 55.60 49.93 34.79 45.18

(42.36) (49.86) (60.95) (71.21) (75.02) (73.68) (70.48) (65.23)285.33 325.50 397.60 449.58 430.17 406.42 370.73 350.68

9 10 11 12 12 12 12 12

42.36 49.86 60.95 71.21 75.02 73.68 70.48 65.23

68.18 62.95 91.79 134.90 154.86 126.28 105.72 84.31

36.74 90.03 133.05 123.20 55.60 49.93 34.79 45.18

(41.96) (61.19) (89.93) (103.24) (84.19) (70.48) (56.21) (51.80)

62.95 91.79 134.90 154.86 126.28 105.72 84.31 77.69

41.96 61.19 89.93 103.24 84.19 70.48 56.21 51.80

42.36 49.86 60.95 71.21 75.02 73.68 70.48 65.23

41.96 61.19 89.93 103.24 84.19 70.48 56.21 51.80

0.39 (11.33) (28.98) (32.02) (9.17) 3.20 14.28 13.44

28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00%

(62.38) (62.27) (65.44) (73.56) (82.52) (85.09) (84.19) (80.20)

- - - - - - - -

0.11 (3.17) (8.12) (8.97) (2.57) 0.90 4.00 3.76

(62.27) (65.44) (73.56) (82.52) (85.09) (84.19) (80.20) (76.44)

e changethetax rate

f ourm liability,x rate.


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1 1 0 0 0 0 0 036.74 90.03 - - - - - -


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1-Jan-28 1-Jan-29

31-Dec-28 31-Dec-29

2028 202917 18

1.60 1.65

69.00 99.00

110.72 163.63

350.68 395.29

110.72 163.63

(66.11) (75.98)395.29 482.94

12 12

66.11 75.98

77.69 113.05

110.72 163.63

(75.37) (110.67)

113.05 166.01

75.37 110.67

66.11 75.98

75.37 110.67

(9.26) (34.69)

28.00% 28.00%

(76.44) (79.03)

- -

(2.59) (9.71)

(79.03) (88.74)


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0 0- -


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Depreciation examplePeriod start 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16 1-Period end 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-

"Standard" approachYear Year 2012 2013 2014 2015 2016Year counter #Num 1 2 3 4 5

Capex (nominal) US$m 1,314.44 10.00 65.92 73.20 108.18 100.17

Purchases

Purchase in period 1 US$m 10.00 10.00 - - - -

Purchase in period 2 US$m 65.92 - 65.92 - - -

Purchase in period 3 US$m 73.20 - - 73.20 - -

Purchase in period 4 US$m 108.18 - - - 108.18 -

Purchase in period 5 US$m 100.17 - - - - 100.17 Purchase in period 6 US$m 45.21 - - - - -

Purchase in period 7 US$m 40.60 - - - - -












Total US$m 1,314.44 10.00 65.92 73.20 108.18 100.17

Depreciation Rate

Purchase in period 1 US$m 8.33% 0.83 0.83 0.83 0.83 0.83

Purchase in period 2 US$m - 5.49 5.49 5.49 5.49

Purchase in period 3 US$m - - 6.10 6.10 6.10

Purchase in period 4 US$m - - - 9.01 9.01

Purchase in period 5 US$m - - - - 8.35

Purchase in period 6 US$m - - - - -













Total US$m 831.50 0.83 6.33 12.43 21.44 29.79

"OFFSET" approachCapex (nominal) US$m 1,314.44 10.00 65.92 73.20 108.18 100.17

Depreciation Year(s)

Periods to include #Num 12 1 2 3 4 5% p.a.

Depreciation US$m 8.33% 831.50 0.83 6.33 12.43 21.44 29.79

A typiout pulines,

This approach still requires sommodelling to stop the account odepreciating using MIN() and S

This first row is a counter of how manyperiods retrospectively to include in theSUM(). When depreicating an item over years then in any given period we will oninclude items paid within the previous 12years. Hence the cap of 12.


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asset schedule corality modeloff worked solution asset schedule

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