PwC175

Fixed Assets - Best Practice Objectives

Fixed Assets

Objectives



To maintain a complete register of all the
organisation’s fixed assets which reflects
location, age, current values, associated
cost centres



To calculate depreciation consistently
with financial reporting requirements



To optimise replacement policies



To minimise ownership costs

Organisation



Asset recording
integrated with
maintenance and
non financial data



Centralised asset
accounting



Asset ownership
devolved to business
unit level

People



Control focused



Challenge asset
requisition proposals

Processes



Maintain asset
register



Acquisitions and
disposals



Depreciation charge



Verifying asset base



Maintaining of
valuation basis

Controls



Asset
verification



Asset valuation



Acquisition and
disposal
authorities

Measures



Number of
assets
maintained



Cost of
department



Elapsed time
to record asset

Information Systems



Asset ledgers
integrated with GL
and AP



Depreciation and
project control by
cost centre



Automated
depreciation
calculation