A country-specific update that supports the asset retirement obligation in Japan in Microsoft Dynamics AX 2012 R2

The asset retirement obligation feature supports the following functionalities:

• Discount ARO future cash flows to their present value.
• Capitalize the corresponding asset retirement cost by adding it to the carrying amount of the corresponding fixed asset, when you initially recognize an ARO liability.
• Recognize any period-to-period increase in the carrying amount of the ARO liability as an accretion expense. To do this, multiply the beginning liability by inflation rate derived when the liability was first measured.
• Recognize upward liability revisions as a new liability layer, and discount them.
• Recognize downward liability revisions by reducing the appropriate liability layer.

Update information

This country-specific update is included in Cumulative Update 7 (CU7) for Microsoft Dynamics AX 2012 R2.
To apply this country-specific update, install CU7 for Microsoft Dynamics AX 2012 R2.

For more information about CU7 for Microsoft Dynamics AX 2012 R2, click the following article number to view the article in the Microsoft Knowledge Base:

2885603 Cumulative Update 7 for Microsoft Dynamics AX 2012 R2

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