Options for defining account groups

If you exchange or trade in assets that are subject to GAAP rules on similar assets or United States tax rules on like-kind exchanges, use the Deferred Gain and Deferred Loss accounts on Account Group (AM05.1). These accounts let you defer the gain or loss when you dispose of an old asset until after you have added a new asset.


Deferred Gain Account Deferred Loss Account	You can use the Deferred Gain account when the asset disposal is part of a like-kind exchange; the account records the preliminary gain calculated by the Asset Management application as a liability instead of other income. You can use the Deferred Loss account when the asset disposal is part of a like-kind exchange; the account records the preliminary loss calculated by the Asset Management application as an asset instead of an expense. To define an account group to be used by asset-class assets, Lawson highly recommends that these accounts match the accumulated depreciation account specified for the type associated with the asset class.