The objectives of an asset management policy are to ensure that assets are managed and accounted for by:
Compliance with legislation and accounting standards;
Compliance with accounting policies;
Physical control over fixed assets;
Accurate recording of fixed assets and related transactions;
Providing management information on fixed assets.
Prescribe Processes and procedures to implement
The goal of asset management is to achieve the required level of service in the most cost-effective manner, which is achieved through management of the asset’s life cycle.
Asset Management Policy’s purpose is to prescribe procedures for the financial and logistical management of assets, and to:
provide a formal set of financial procedures that can be implemented to ensure that asset policies are achieved;
ensure that effective controls are communicated to management and staff through clear and comprehensive written documentation;
ensure that the safeguards and controls the assets;
optimize asset usage; and
emphasize a culture of accountability over assets.
Asset Registers
The asset register shall be a complete and accurate database of the assets
and that is regularly updated and validated.
All assets owned and controlled by an entity must be recorded in an asset register.
The asset register should contain following information:
a brief but meaningful description of each asset
the date on which the asset was acquired or brought into use
the location of the asset
identification number or barcode
the original cost or the fair value if no costs are available
accumulated depreciation to date
the depreciation charge for the current financial year
the carrying value of the asset
the method and rate of depreciation
impairment losses incurred during the financial year
the date on which the asset is disposed of
the disposal details
the date on which the asset is retired from use, if not disposed of.
Assets remain in the asset register for as long as they are in existence or until being written off.
Wessels & Associates is an Audit and accounting practice based in Pretoria, Montana area.
We specialize in the following:
Fixed Asset Registers
Quality control and testing of Fixed Asset Registers
Asset Management Policies
Assessing useful lives and impairment of assets
Technical support on GRAP (General Recognized Accounting Practice)
Training and workshops on GRAP related to assets
Streamline your internal processes to be more efficient
Help build your own capacity within your business.
Audit Support
Consulting
