Other Current Assets BBB

Other Current Assets include such items as prepaid expenses. The 'Other Current Assets' Business Building Block (BBB) is identical to the Other Assets and Intangible Assets BBBs. The only difference is where the item is listed on the Balance Sheet and Cash Flow Statement.

Parameters:

BBB Extension - If a BBB Extension has been created for this BBB type, you will be able to convert this BBB to that type by selecting the new type and clicking save.
Note: Changing BBB Extensions could add or remove line items.

Title - A descriptive name for this asset.

Purchase Date - The date the Purchase Amount was incurred. If the asset was purchased before the Start Date of the Plan, you must enter the Initial Balance under Startup, Model Parameters, Edit Initial Balances/Historical Data.

Purchase Amount - The original value of this asset.

Accounts Payable/Accrual - References an Accounts Payable BBB (default) or an Accrued Liability BBB. The Accounts Payable BBB specifies how invoices for this component will be paid and will appear under accounts payable on the Balance Sheet.  If an Accrued Liability BBB is selected, the accrual will appear under Accrued Liabilities on the Balance Sheet.

Amortization Months - The number of months over which the expense is to be amortized. This value can be modified using a Constant Projection by selecting on the link and then following the instructions in the Tools Section. NOTE: All amortization is Straight Line.

Historical Data - (Optional). If Historical Data has been configured to include more than Initial Balances (see Model Parameters for more information) this parameter will be listed.  Clicking will open the data entry fields below, allowing you to configure historical data for this item.  See "How do I handle Preexisting Land, Plant and Equipment, Other Assets, Other Current Assets, or Intangible Assets?"  for more information.

Actual Data - (Optional). If Actual Data has been activated in the model (see Option / Actual Data for more information) this parameter will be listed.  Clicking will open the data entry fields below, allowing you to configure actual data for this item, which operates the same way as Historical Data.  See "How do I handle Preexisting Land, Plant and Equipment, Other Assets, Other Current Assets, or Intangible Assets?"  for more information.

Budget Data - (Optional). If Budget Data has been activated in the model (see Option / Budget Data for more information) this parameter will be listed.  Clicking will open the data entry fields below, allowing you to configure budget data for this item, which operates the same way as Historical Data.  See "How do I handle  Preexisting Land, Plant and Equipment, Other Assets, Other Current Assets, or Intangible Assets?"  for more information.

Annotation - Add notes, document the underlying reasoning for your assumptions, or include other comments for this BBB. Select Reports, Summary of Assumptions to view and print out the complete annotation list.

Note: If Scenario Parameters have been included in the model, a button will appear next to the certain parameters, allowing you to switch between a model wide variable (scenario parameter) and a constant specific to the BBB.

More Options:
The following additional options may be exposed as needed by selecting "More Options" in the upper right hand corner of the parameter block:

Charge Amortization to Expense Group. - The group to which the amortization for this asset is to be charged. If 'none' is selected, amortization will be charged to 'Amortization' under Operating Expenses.

Months before Starting Amortization - By default amortization begins in the same month as the Incurred Date and cannot start before that date. However, amortization can be delayed if desired. Enter the number of months to wait before starting amortization.

Amortization Stop (months after purchase) - If you plan to take an asset out of service without writing it off, enter the number of months after starting amortization to stop it. Amortization is stopped at that point and the value of the asset is maintained from that date on.

Months to Sale Date (optional) - In the event that you want to sell the asset, specify the number of months after the purchase date for the sale to occur.

Sale Amount - The proceeds from the sale. NOTE: A gain/loss on sale will be determined based on the book value on the date of the sale.

Accounts Receivable - If the revenue is not to be collected by 100% cash, select the Add Accounts Receivable button and create a new Accounts Receivable BBB, or select an existing Accounts Receivable BBB from the drop-down list. NOTE: Typically, the sale of an Other Asset will be a Non-Operating Receivable. After you select on Add Accounts Receivable, select 'Other Non-Operating Receivables' and then create the Accounts Receivable BBB that fits your situation.

Formula Override Parameters :
Formula Override Parameters allow you to replace calculated values as needed during the modeling period.

Amortization - Enter the amount of amortization for this asset.

Gain/Loss on Sale - Enter the amount of gain or loss on the sale, if any, for this asset.

Purchases - Enter all purchase amounts for this asset.

Sales - Enter all sales amounts for this asset.

Amortization on Disposal - Enter the amount of amortization that applies to the portion of the assets sold.

When you use formula overrides,  multiple purchases or sales are possible.  You can sell an asset or a portion of an asset.  However, certain other entries may also be necessary.  You may need to include Amortization on Disposal, which should equal the accumulated amortization on the portion of the asset being sold at the time of sale.  Additionally, when selling an asset you may need to specify the gain or loss on the sale to be listed on the income statement.