Creating an Initial DRO Plan

Applies to: DRO (IAS 37) module | Audience: Customers | Last reviewed: 08/05/2026

• Where to start
• Adding the plan
• Summary and Contacts
• Plan Details
• Documents
• Reviewing the completed plan
• Submitting and approving the plan

Where to start

The initial plan is the foundation for an account, because every later change is a variation on it. Building one starts in the Plan section under DRO, with the project or area of concern (AOC) already selected.

1. A specific expense type must be chosen before a plan can be added. Expense types would have been created during configuration
2. Select Add Plan. The new plan opens on the Summary and Contacts page, which holds several groups of fields.

Summary and Contacts

Effective from and end of life dates

Set the effective from date and the end of life date. The end of life date is entered directly; what the platform derives is Remaining Life, measured from the effective from date to the end of life date. End of Life and Remaining Life apply to Asset plans only. Expense plans omit these fields, so this step is Asset-specific. Reason - Set the reason to the initial recognition of the asset and liability.

Scenarios

Scenarios are added to this section. More than one scenario can be added, each weighted proportionately, and DRO blends them into a weighted average scenario. A single scenario is weighted at 100%.

Contacts

The Contacts section holds everyone who needs to be on the plan and project. Add as many people as the plan requires.

Plan Details

Plan Details is where the liability, and with it the asset, is forecast. Choose the phase (e.g. 1 – Assessment) and add a row for each spend amount. Comments can be recorded alongside the amounts.

The weighted average is calculated here as well. It is read only, and it is based on the amounts entered into each scenario.

Cost or recovery

Plan Details is also where a plan is set as a cost plan or a recovery plan. Recovery applies when the customer expects to recover costs from an insurer or a third party in relation to the project.

Documents

Documents holds the files that support the plan. Choose a file, load it, then select Done. As much or as little supporting detail can be added as the plan requires.

Reviewing the completed plan

The completed plan shows a nominal weighted average, drawn from the amounts entered in Plan Details, alongside the expected present value calculated from the rates attached to the project.

Assumptions

Assumptions shows the rates in use: the inflation rate, and the discount and accretion rates, all drawn from the interest rate group selected during configuration.

Summary tab

The Summary tab shows the details associated with the plan, including the nominal plan and the expected present value plan. Change in discount also appears here, although an initial plan has nothing to show yet; with no prior plan to compare against, there is no change in discount or change in estimate split, and the initial plan carries only a total adjustment.

Monthly detail

Monthly detail is available from the same tab. It lists the months elapsed since the life of the plan began, the rates associated with them, the monthly rate, the monthly value, the future value, and the discounted value by month. The detail can be exported and downloaded for further analysis.

Change in estimate and change in discount

This is where change in estimate, the inflation component that rolls up into it, and change in discount are broken out. The breakdown makes it straightforward to pull the values needed for financial statement disclosures, and it is available at higher levels as well as at the plan level.

Submitting and approving the plan

Submit the initial plan once it is complete. A user who also holds approval access on the account can review the same plan, which opens a review page showing the same fields with a reject or approve toggle. Once the plan is approved, it becomes effective. Note that although the system permits a user with approval access on the account to approve a plan, most control environments require the reviewer to be someone other than the preparer.

• Configuring DRO planning type and subtype
• Navigating the DRO module and its submodules
• Core DRO concepts and terminology
• Understanding Change in Discount and Change in Estimate