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 organizations whereby multiple legal entities are planning to merge into and their respective registers must be consolidated.

Both of these situations add levels of complexity. Alignment of financial classifications and associated declaration of the useful life for assets within the class is a common issue that needs to be addressed.

It is not uncommon to find that the useful life for the same types of assets will vary across multiple organizations. Register recording methods also vary, some being more detailed than others. To further complicate things, capitalization thresholds can vary and conflict with an organization.

Stay tuned as we address the further process and how we approach these issues…

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