How Spaces helps
Your ERP stores rate types and overrides. Agents draft net-investment designation memos and rate-override records with cited evidence, then route them for approval.
Still manual today There is usually no workflow for documenting net-investment designations or the reasoning behind rate overrides.
Example USD 9.86M interest-free loan from HoldCo SG to TechCo IN, with no repayments in 24 months and treasury confirming no settlement intent: the memo designates it as part of the net investment under IAS 21.
Designations and overrides · group
- HoldCo SG loan to TechCo IN Designation memo approved Done
- HoldCo SG loan to OpsCo HK Settlement planned, not designated Done
- TechCo IN historic rate override Reason recorded, awaiting approval For approval
- New loan to OpsCo HK Settlement intent unclear Needs review
- Annual designation review Due December For approval
Every override carries a recorded reason
What the agent does
- Identifies intercompany loans that may qualify for net-investment designation
- Drafts designation memos citing loan terms and settlement intent
- Records the reason for each rate type override per entity
- Routes memos and records for maker-checker approval and annual review
How it runs
- 01 Find candidates Reviews intercompany loan agreements and treasury discussions for settlement intent.
- 02 Draft memo Writes the designation memo or override record with each fact cited.
- 03 Link to settings Connects each record to the entity's rate type settings in your ERP.
- 04 Approve and review Approved memos are stored and resurfaced for periodic review.
Judgment captured
The reasoning behind designations is written and sourced.
Approved before relied on
Memos follow maker-checker approval before use.
Ready for auditors
Designations and overrides arrive with support attached.
- Does the agent decide whether a loan qualifies?
- No. It drafts and cites. Your team makes the accounting judgment.
- Who approves a designation memo?
- A preparer drafts, and a separate approver such as the CFO or controller approves before it is relied on.
