Some ARO situations call for a several layers to be set up for a single underlying asset, with each layer ending at a different time. One example is a quarry operator, who expects to complete activities in the entire quarry area in stages, perhaps closing one tenth per year for 10 years. To simplify the setup process, you can use the Multiple Layers entry window. This is available on either the ARO menu or the context menu if you right-click on any line of the ARO tree.
Begin date: The same begin date is used for all the AROs created in this run.
Booking date: The same booking date is used for all AROs. The booking date cannot be earlier than the Begin Date.
First end date: The end date for the first layer to be created.
Last end date: The end date for the last layer to be created. If the last end date is not an anniversary of the first end date, the last layer has a date before the Last End Date specified. If the ARO is attached to a lease, this cannot be beyond the effective end date of the lease.
Layer every: Select how often a new layer should be created, such as 1 quarter or 5 years.
Cost per period: The initial cost to set up for each layer. All AROs created have the same cost.
Inflation Rate: Enter the inflation rate to assume to calculate the future value of the ARO.
Risk-Free Rate: Enter the credit-adjusted risk-free rate for calculating the ARO accretion.
Click on Process to create the multiple layers. Each layer is given a name in the form of yyyy/mm, where yyyy is the year and mm is the month of the layer's end date.