Account Mapping Templates - PDF by vgv17500

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									Printed on: 2008-05-28                                  Sample file v2006   Period Ending: 2005-12-31
                                                                            Index Page: 1
   0002   1 - Mapping Number Explained (6)
   0008   6. 0 - Compilation checklist (1)
   0009   6. 5 - Reclassifying journal entries (1)




           reviewed by
           erik.beauchamp
           28May08




                                       approved by
                                       erik.beauchamp
                                       28May08
                                                Mapping Database
This document can be printed from the sample file that comes with the software. It is listed on the Document Manager
as Document #1.

Introduction:

Mapping numbers are like a standard chart of accounts with all the applicable properties (e.g. leadsheet grouping, tax
linkage) pre-assigned to these accounts. Mapping numbers can serve the following important functions:

1. By simply matching an account number from a client’s specific chart of accounts to a corresponding map number,
   all the properties of that map number are autofilled for the specific account. In addition to being significantly faster
   than applying properties to each of the client accounts, this method ensures consistency and accuracy over all files
   (e.g. cash will be leadsheet A in all files).

2. The use of wildcards to link a range of common accounts can now be utilized. Although the client’s account
   numbering scheme may not be organized in a useful manner, the mapping number scheme can be made systematic.
   For example, 111* could mean all cash accounts where 111.110, 111.120 are individual cash accounts.

Templates can now be created so that every component is completely independent of the client’s account structure.
All templates can then be used without modification for any clients using the default mapping numbers.

Although optional, its correct usage as a standard within a firm can greatly increase productivity and integrity in the
performance of bookkeeping, compilation, review and audit engagements.

Default Mapping Database

Although many firms may design their own mapping database(s), we have provided a default mapping database with
our sample file that gets automatically installed with the software. The purpose of the default database is as follows:

1. Provides ideas for those designing their own mapping database.

2. Will be the basis of all our future templates, and therefore, serious consideration should be given to using all or
   parts of this default as the user’s own default mapping database in order to use these templates without any
   changes.

In designing this default mapping database, the following factors were considered:

1. The lowest level of mapping detail would be sufficient to automatically prepare the following:

   a)   Full GAAP financial statements, including any detail required in the notes.

   b)   Filing Revenue Canada corporate tax returns (General Index of Financial Information [GIFI] and Corporate
        Efile to meet the requirements for the above forms and to satisfy requirements by Statistics Canada).

   c)   Any requirements for provincial tax.

   d)   Any auditing issues (e.g. CICA Practice Engagement Manual), enhanced client reporting requirements and
        future bench marking issues (e.g. comparing the user’s client to industry standards).

2. A system that can be easily used for different sizes and types of engagements. For example, Revenue Canada will
   have different reporting standards for large and small corporations and special types of corporations (e.g. financial
   institutions and farming corporations).

3. A methodology that can allow new classifications without redoing the entire methodology. This will then eliminate
   any unproductive client setup time.

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4. A methodology that allows users to add their own mapping component while still keeping in sync with the default
   mapping database.

We realize that it may be overly ambitious to have one mapping database perform all the above without sacrificing
some efficiency. It may become necessary to have more than one default mapping database, especially for different
types of industries.

Also, we are still researching all the implications with respect to disclosure details for financial statements and other
issues such as bench marking.

As such, the user should treat this default mapping database as a draft that may be changed in the future. For those
users that add new map numbers, we have provided new functionality in the Copy Template feature of Version
2000 to help convert an old mapping database to a new mapping database.

Default Mapping Number Structure

The mapping number in the default database is an 8 digit number divided into three components (go to Tools, Options,
Mapping, Mapping Mask) as follows:

XXX.XXX.XX

The use of three distinct components is important as the assign mapping function uses these components to better
organize the mappings in a hierarchical manner making it easier to efficiently match client accounts with mapping
numbers.

Component 1 (XXX.xxx.xx)

This is reserved for CaseWare except as noted below. Care should be exercised when creating your own numbers (go
to Account, Mapping) to ensure synchronization with the default mapping database.

 This level provides sufficient detail for Revenue Canada for small corporations (gross revenues or assets less than 3
million) and apparently represents over 80% of the tax returns submitted using computer software. As such, users will
not have to assign an account to a deeper level if their prime purpose is to meet Revenue Canada needs. In many cases,
this level may be adequate for client purposes (non-GAAP reporting) and "small" GAAP requirements.

Component 2 (xxx.XXX.xx)

As illustrated above, this component is also reserved for CaseWare except as noted below. Care should be exercised
when creating your own numbers to ensure synchronization with the default mapping database.

This level hopefully provides sufficient detail for Revenue Canada for large corporations and the other requirements
(such as full GAAP).

We have reserved the third digit in component 2 for greater detail in the default mapping database.

Component 3 (xxx.xxx.XX)

This component is completely optional and will not be included in the default database. It is available to the user either
for the firm as a whole or for a specific client.

The user can add detail to a mapping number by using component 3 attached to existing component 1 and component
2 numbers. The added detail will be mapped to templates with existing mappings due to the use of wildcards in
template calculations. Therefore, when adding detail using component 3 to a mapping number, care should be taken to
include it in the proper component 1 and component 2 category.

Exception
                                                                                                                   Page 2
If there is no component 1 or component 2 category for the account type, we have reserved the number 9 in the first
digit of component 1 and component 2. This provides the user with some flexibility to create their own categories.
However, the user must realize that these mapping numbers would not necessarily be included in the templates as they
might not fit into any wildcard formulas.

Categories

If you find that there is a category missing from the mapping components that is general in nature (not client specific)
we would appreciate your feedback so that we may consider appropriately adding it to the default mapping database.

Properties of the Default Mapping Database (under Account, Mapping)

Map No

Enter the map number. Similar to account numbers, map numbers can include up to 16 digits and are alphanumeric.

Name

This represents the mapping number description. This description can be linked to cells in CaseView. An extended
description can be added to the map number by clicking on the box at the right side of the description cell. This
description does not appear on the printed document. It is available for linking to alphanumeric cells in CaseView
documents using the Linkage dialog.

Title

Click here to use the current line’s description as a heading in the Account, Assign Mapping Numbers dialog.

Type

Select the relevant statement type.

B (Balance Sheet)                        If selected, the map number is a Balance Sheet item.
I (Income Statement)                     If selected, the map number is an Income Statement item.
S (Statement of Cash Flow)               If selected, the map number is a Statement of Cash Flow item.

Sign

Enter either D for Debit or C for Credit as the normal sign for the map number.

Debit - normal sign for amount (D)       If selected, the map number is normally a debit balance.
Credit - normal sign for amount (C) If selected, the map number is normally a credit balance.
L/S

Select a leadsheet number to have this map number appear on the selected leadsheet.

The leadsheets set up in the mapping database are based on the CICA Practice Engagement Manual’s standard index
for a year-end audit file. If this is not your standard, it may be necessary to modify the mapping database to
incorporate the standard used in your office.

Class

Select the appropriate ratio class. Ratio classes are used for generating ratios when performing analytical review
procedures. They are also useful when preparing the schedule of unadjusted errors.

The class is the standard ratio class used by CaseWare.

                                                                                                                 Page 3
Groups 2, 3, and 4

Select a group number from Grouping 2, 3 or 4 to have this map number appear on the selected grouping schedule.

Except for the leadsheets’ group, groups have been left blank for the user to fill in to customize their client files.

Tax Code

If applicable, select the appropriate tax code for the map number. The available tax codes vary depending on the tax
jurisdiction and entity specified in the Client Profile.

The tax codes setup in the default mapping database are for exporting information to the federal schedules such as the
T2S(1) to tax software. Provincial information tax codes have been left blank because various provinces require
different tax code links.

Units

If applicable, type or select the Units for the performance account. To create units for performance measures accounts,
from the Tools menu, select Options/Lists and then click the Units tab.

Continuity of Map Numbers

The mapping numbers attempt to maintain the integrity of a standard chart of accounts at each of the component
levels. However, there are some discrepancies due to the format of the mapping numbers. For example, the
accumulated amortization account usually follows the related cost account in the numbering of accounts. In the
mapping database, cost of buildings is mapped to 155 and accumulated amortization - buildings is mapped to 156 at
the component 1 level. However, if you require greater detail you might use 155.100 Buildings and 155.200
Manufacturing and processing plant with the corresponding accumulated amortization accounts mapped to 156.100
and 156.200 respectively.

Mapping the Statement of Cash Flow

There are certain numbers in the statement of cash flow that do not come from your client’s general ledger. Additions
to fixed assets and proceeds on disposition are included in the fixed asset cost and gain/loss on disposition accounts,
but are not specifically set out in their own accounts. Included in the default mapping database are mappings
specifically for the statement of cash flow. These mapping numbers have the letter S as the first digit in component 1.
For example, S40 is additions to capital assets and S41 is proceeds on disposition.




                                                                                                                         Page 4
Wildcards

Linkages to CaseView and automatic document property settings in CaseWare now incorporate wildcards. The
wildcards are represented by an asterisk (*) and a question mark (?). The wildcards operate in a similar fashion to
those used in Windows Explorer. When the asterisk is used, all mapping numbers that have the same first character(s)
will be included in the total. Using the question mark will result in totaling all map numbers where all other digits
match.

Examples

Examples of mapping calculations for cash accounts, and the resulting mapped accounts included in the total:

MAP("AY",111*)      MAP("AY",111.*)       MAP("AY",111.1*)      MAP("AY",111.11*)       MAP("AY",111.?1*)
     111
   111.110               111.110               111.110                111.110                 111.110
   111.120               111.120               111.120
   111.210               111.210                                                              111.210
   111.220               111.220
   111.310               111.310                                                              111.310
   111.320               111.320
   111.800               111.800

Other examples
To obtain:                           Calculation:
Total assets                         MAP("AY",1*)
Total current assets                 MAP("AY",11*)+MAP("AY",12*)
Total long-term assets               MAP("AY",13*)+MAP("AY",15*)+MAP("AY",17*)+MAP("AY",18*)
Total liabilities and
  owners’ equity                     MAP("AY",2*)
Total current liabilities            MAP("AY",21*)+MAP("AY",22*)
Total long-term liabilities          MAP("AY",23*)+MAP("AY",24*)+MAP("AY",26*)
Total owners’ equity                 MAP("AY",27*)
Total revenue                        MAP("AY",3*)
Total cost of goods sold             MAP("AY",4*)
Total operating expenses             MAP("AY",5*)
Total non operating income
   and expense                       MAP("AY",8*)
Examples Using Component 3

You may want to use component 3 to map capital assets by class number:
e.g. The default map number for production equipment - cost is 157.250. However, the user may wish to include
     detail by CCA class as follows:
        Manufacturing and processing - Class 29          157.250.29
        Manufacturing and processing - Class 39          157.250.39
        Manufacturing and processing - Class 40          157.250.40
Note

Depending on the amount of detail desired, we recommend that the user either map to component 1 or to component 2,
but not both. Particularly when dealing with one type of account.

e.g. If cash on hand is mapped to 111 then all cash accounts should be mapped to 111 and none to component 2.
                                                                                                      Page 5
However, if the user requires more detail for the various cash accounts, no accounts should be mapped to 111 as all
cash accounts would be mapped to component 2. 111.800 would be used as other cash for accounts that do not
specifically fit into the mappings provided in the default database. Using component 1 to map in one area does not
preclude the user from using component 2 mappings in other areas that require more detail.

The linkages set up in CaseView incorporate wildcards as described above. MAP("AY",111*) will include all cash
account mappings. Where notes are required, mappings to more detailed information are included.

If mapping to component 1 does not provide enough detail to link your tax codes for exporting to tax software, then
the user should map using component 2.

e.g. Meals and Entertainment would be mapped to 511.300

Revenue Canada Issues

Revenue Canada has moved to a more ordered system for the tax returns. In their efforts to make their data collection
simpler Revenue Canada has developed the "General Index of Financial Information" (GIFI). Revenue Canada is
attempting to standardize information that they receive and to drive tax information returns. We have developed our
mapping database to include the account descriptions included in the GIFI. There are a number of outstanding issues
being dealt with which may affect the mapping database. Examples of some outstanding issues are:

1. Provincial Returns

   The tax codes have been set to transfer as much information from the chart of accounts as possible to the Federal
   tax return. Information relating to the provincial returns has not been set up in the tax codes as there are ten
   provincial tax returns and currently only one tax code group to map to.

   Is Revenue Canada attempting to drive the CCA schedules using the GIFI? Currently it is not possible to link
   capital asset additions and disposals to the CCA schedules.

2. Research and Development

   Is Revenue Canada developing GIFI for R&D? More detail is required to drive the tax returns.

3. Capital Tax

   Capital tax is part of the provincial returns discussed above. More detail is required to drive the tax returns.




                                                                                                                      Page 6
Sample file v2006                                                                                           6. 0
Year End: 31 décembre 2005
Compilation checklist



                                                             Y/N   Comments   Initials   Reference    Annotation

Either type the checklists or procedures you want to use
here or using FILE COPY, copy your standard programs that
you use in your practice. If you want to use the programs
in The Professional Engagement Manual published by the
Canadian Institute of Chartered Accountants, you can order
these templates from us at 416-867-9504.




2008-05-28
08:42                                                                                                Page      1
Sample file v2006                                                                                                       6. 5
Year End: 31 décembre 2005
Reclassifying journal entries                                                                          approve
                                                                                                       erik.b
                                                                                                       28May0




Date: 2005-01-01 To 2005-12-31

Number       Date     Name                                    Account No     Reference Annotation        Debit       Credit

2        2005-12-31 Bank loan                                202            AA                      100 000,00
2        2005-12-31 Bank Loan (Non Current)                  260   reviewed
                                                                   erik.beauchamp
                                                                   28May08
                                                                            AA        by
                                                                                                                 100 000,00

                    Reclassify non-current portion of
                    bank loan                           reviewed
                                                        erik.beauchamp
                                                        28May08
                                                                           by




                                                                                                    100 000,00   100 000,00



                                         Net Income (Loss)     33 272,00




2008-05-28
08:42                                                                                                            Page      1

								
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