The Role of Stakeholders in Effective Asset Management

Controls are necessary in order to ensure that asset management is occurring and as expected. There are many ways to achieve control and they will vary throughout the asset life cycle. For example, controls that apply to acquisition will differ from those of verification. However, the principal problem that is commonly experienced lies in record-keeping. […]

read more

Asset Management Entry 3 – InformationFlow

Automating asset management activities represents an important control. Typically this relates to the capture and reporting of information. However a better approach is to apply automation at the workflow level and as a means to automatically force compliance with policies and regulations. Doing so would also, by design, include data capture activities. Of particular significance […]

read more

Management Blog Entry 2- Tracking Non-capital/Expensed Assets

In order to identify the classes of expensed/non-capitalized assets to be tracked and included within an asset management program, you must establish a set of criteria. For example, assets that contain confidential information need to be controlled. Assets susceptible to theft or misplacement warrant inclusion as well. In some cases an asset is constructed from […]

read more

Asset Management – Entry 1

The term asset management is used to represent a system of internal controls designed to safeguard and track the property of an organization. Most organizations have a policy to capitalize only those assets which cost more than a specified amount and expense all equipment whose value is below the threshold limit. Similarly, fixed assets which […]

read more

Reconciliation Entry 9 – Conclusion

Generally speaking, a fixed asset register is intended to be used for depreciation reporting – not for tracking physical assets. Consequently, the vast majority of registers either don’t accommodate the detail needed to track assets or the personnel who maintain a register typically do not have enough reliable information in order to include tracking details. […]

read more

Reconciliation Entry 8 – Establishing Conventions for Bundled FAR Entries

In the last entry, we touched upon register adjustments related to additions. Potential adjustments can also be associated with (but are not limited to): Removal of an asset that could not be verified during the physical count (referred to as a write down or write off) Change of location, which can impact property tax Allocation […]

read more

Reconciliation Entry 7 – Additions

In order to reconcile capitalized fixed assets, Verasset must first conduct a physical inventory count. Prior to beginning the physical verification task, we compile a list of asset types that will be included in the physical inventory. The results from the physical count are used to verify or adjust the fixed asset register records. During […]

read more

Reconciliation Entry 6 – Bundled Entries in the Fixed Asset Register

Reconciling physical assets to ledger entries, also known as matching, can take on a variety of forms. In fact, the reason to reorganize and categorize asset registers as an initial first step is to aid later on when attempting to compare and match records to assets. It is important to note that reconciling using assumptions […]

read more

Reconciliation and Verification- Issues

The process detailed in the previous blog entry summarizes a common problem faced by many organizations. However, in some cases we have found that as a result of a merger or an acquisition, an organization might have multiple asset registers that need to be consolidated and reconciled. In more extreme situations, we have worked with […]

read more

Asset Reconciliation and Verification Entry 2 – Organization

To simplify the reconciliation process and prepare the fixed asset register, we make a copy of the existing register and reorganize the information contained within it. Each entry in the register is evaluated on a line by line basis. The task begins by identifying intangible and tangible entries. We then categorize entries into similar high-level […]

read more