Asset Register Reconciliation
An effective asset management system improves an organisation's knowledge of their assets and the performance of their business.
An accurate asset register is a critical component of such a system however many companies' asset registers are very difficult to match to the physical assets on the factory floor.
An asset register reconciliation project can solve this problem. The exercise involves compiling an independent inventory of the assets to an agreed level of materiality and then reconciling the entries of the fixed asset register to that inventory.
The most common reasons for undertaking an asset reconciliation are:
In certain circumstances the asset register may be so poor that it is worthwhile reconstructing the register so that it more accurately reflects the assets on the factory floor but retains the important financial information.
An asset reconciliation also provides the foundations for you to integrate your maintenance system to record repairs and maintenance (R&M) expenditure against the correct assets. This then allows you to produce reports that show the R&M spend on specific assets and thereby make better informed decisions as to when assets should be replaced.
Simply contact us to begin the process to improved asset management.
An accurate asset register is a critical component of such a system however many companies' asset registers are very difficult to match to the physical assets on the factory floor.
An asset register reconciliation project can solve this problem. The exercise involves compiling an independent inventory of the assets to an agreed level of materiality and then reconciling the entries of the fixed asset register to that inventory.
The most common reasons for undertaking an asset reconciliation are:
- Audit and verification of asset registers to satisfy both internal and external auditors;
- Reconciliation of asset values to carrying values for impairment testing to satisfy financial reporting requirements;
- Purchase price apportionment upon acquisition of another company so as to declare Fair Value of acquired assets and avoid inheriting poor asset registers; and
- Establish an accurate asset register which future asset management systems can properly maintain.
In certain circumstances the asset register may be so poor that it is worthwhile reconstructing the register so that it more accurately reflects the assets on the factory floor but retains the important financial information.
An asset reconciliation also provides the foundations for you to integrate your maintenance system to record repairs and maintenance (R&M) expenditure against the correct assets. This then allows you to produce reports that show the R&M spend on specific assets and thereby make better informed decisions as to when assets should be replaced.
Simply contact us to begin the process to improved asset management.