3
Maintain fixed
asset register
Control acquisitions
and disposals
Manage periodic
asset depreciation
Verify and value
asset base
Process Features
Determine asset
categories for internal and
statutory purposes
Monitor asset
maintenance charges
Apply insurance valuation
to key assets
Ensure asset responsibility
at BU level
Identify asset usage
Set up appropriate control of
asset acquisition and
disposals across company
Report on acquisitions and
disposals on a monthly basis
Monitor tax issues related to
acquisitions or CIP
Ensure BU responsibility for
assets in their use and for
disposal losses
Depreciate at point of asset
use
Apply depreciation rules to
asset classes
Depreciation rates in
management accounts in
line with statutory rates
Links asset depreciation to
production and product
costs/development
Revalue key assets on a
regular basis based on
book value and high risk
Comprehensive asset
verification on regular
periodic or rolling basis
where asset cannot be
verified via technical
assumptions (most telco’s
do not verify network
assets: the fact that the
network works is
verification enough)
Verify non capitalised
assets
System Features
On line asset register
holding key data and
current cost allocation
Cost code validation with
GL
Automatic links to AP and
Project Accounting system
to capture acquisitions
Revaluation of features
and mass transfers of
assets to new cost centres
Leased asset features
compliant with accounting
standards
Acquisition linked to
purchase order and
accounts payable ledger
Disposals linked to sales
ledger
CIP linked to capital
project accounting
Effective tax management
integrated with the fixed
assets system
Depreciation charged
automatically to cost
centres in GL
Forecast asset
depreciation for budget
purposes
Variable depreciation rules
for classes of assets
Assets can be grouped for
depreciation rules
Variable asset valuation
mechanisms eg historic,
current replacement
Complete asset reports by
physical location and cost
centre
Report on identified or
missing assets
Hold non capitalised
physical assists for
verification
Bar coding of assets for
verification
Fixed Assets - Best Practice Features