普华永道财务管理最佳实践之固定资产.ppt

《普华永道财务管理最佳实践之固定资产.ppt》由会员分享，可在线阅读，更多相关《普华永道财务管理最佳实践之固定资产.ppt（21页珍藏版）》请在三一办公上搜索。

1、Best Practice Financial Processes:Fixed Assets,Fixed Assets-Best Practice Objectives,Fixed AssetsObjectives,To maintain a complete register of all the organisations fixed assets which reflects location,age,current values,associated cost centresTo calculate depreciation consistently with financial re

2、porting requirementsTo optimise replacement policiesTo minimise ownership costs,Organisation,Asset recording integrated with maintenance and non financial dataCentralised asset accountingAsset ownership devolved to business unit level,People,Control focusedChallenge asset requisition proposals,Proce

3、sses,Maintain asset registerAcquisitions and disposalsDepreciation chargeVerifying asset baseMaintaining of valuation basis,Controls,Asset verificationAsset valuationAcquisition and disposal authorities,Measures,Number of assets maintainedCost of departmentElapsed time to record asset,Information Sy

4、stems,Asset ledgers integrated with GL and APDepreciation and project control by cost centreAutomated depreciation calculation,Maintain fixedasset register,Control acquisitionsand disposals,Manage periodicasset depreciation,Verify and valueasset base,Process Features,Determine asset categories for i

5、nternal and statutory purposesMonitor asset maintenance chargesApply insurance valuation to key assetsEnsure asset responsibility at BU levelIdentify asset usage,Set up appropriate control of asset acquisition and disposals across companyReport on acquisitions and disposals on a monthly basisMonitor

6、 tax issues related to acquisitions or CIPEnsure BU responsibility for assets in their use and for disposal losses,Depreciate at point of asset useApply depreciation rules to asset classesDepreciation rates in management accounts in line with statutory ratesLinks asset depreciation to production and

7、 product costs/development,Revalue key assets on a regular basis based on book value and high riskComprehensive asset verification on regular periodic or rolling basis where asset cannot be verified via technical assumptions(most telcos do not verify network assets:the fact that the network works is

8、 verification enough)Verify non capitalised assets,System Features,On line asset register holding key data and current cost allocationCost code validation with GLAutomatic links to AP and Project Accounting system to capture acquisitionsRevaluation of features and mass transfers of assets to new cos

9、t centresLeased asset features compliant with accounting standards,Acquisition linked to purchase order and accounts payable ledgerDisposals linked to sales ledgerCIP linked to capital project accountingEffective tax management integrated with the fixed assets system,Depreciation charged automatical

10、ly to cost centres in GLForecast asset depreciation for budget purposesVariable depreciation rules for classes of assetsAssets can be grouped for depreciation rules,Variable asset valuation mechanisms eg historic,current replacementComplete asset reports by physical location and cost centreReport on

11、 identified or missing assetsHold non capitalised physical assists for verificationBar coding of assets for verification,Fixed Assets-Best Practice Features,Fixed Assets-Measures/Cost Drivers,No of Business Unit FTEs per Fixed Assets FTE,10 percentile,Median,90 percentile,7,31,151,Cost drivers,Fixed

12、 Assets cost per Business Unit FTE(in s),Median,14 days,90 percentile,40 days,10 percentile,1 day,Fixed Assets processing time,Complexity of assetsNumber of assets on registerNumber of asset movementsComplexity of depreciation policiesComplexity of authorisation proceduresRange of data heldNumber of

13、 users of data range,Source:Statistics taken from Benchmarking database:21 February 1997,Separate fixed assets moduleLack of asset ownershipCost of asset usage not attributed to productPerformed by Finance Department,Integrated systems for:Asset tracking via Geographical Information System(GIS)Asset

14、 usageNetwork Capacity PlanningAsset MaintenanceCapital project planning and controlProduct/service costingBU responsibility for ownership,From,To,Fixed Assets-Trends,Fixed Assets-Critical Success Factors,These are a summary of the key business requirements,which must be met to achieve the objective

15、s.,Asset accounting policies clearly documentedAppropriate coding by asset category establishedAuthority levels clearly definedProcedures surrounding Fixed Asset process are documented and communicated to staffBudgets in place for capital expenditureAll existing assets identified and classifiedStaff

16、 trained in FA process and have clear roles and responsibilitiesStatutory and tax requirements understoodFA calendar in place and communicated to staffStanding data set up on the system reflecting asset accounting policiesAbility to model depreciation scenario,Inventory,Accounts Payable,Audit,Projec

17、t accounting,Purchasing,General Ledger,Fixed Assets,Fixed Assets-Level 0 Context Diagram,Asset data(depreciation etc),Goods issued,Asset details&asset payments,Mgt Reports,Statutory reports,Asset disposals,Capitalised assets,Commitments,Unique asset identifier,Management Accounting,Accounts receivab

18、le,Maintenance,Maintenace Cycle,Circuit Provisioning,Usage data,Fixed Assets-Level 1 Overview,FA 1.1 Maintain Standing Data,FA 1.2 Add Assets,FA 1.3 Dispose of Assets,FA 1.4 Maintain Asset Register,FA 1.5 Perform Period End Routines,FA 1.6 Verify Physical Assets,Activities,FA 1.7 Answer Adhoc querie

19、s,Raise request e.g.new asset classPrepare formal requestReview and approve Set up new codes/dataNotify affected users and departments,Input automatic dataInput manual dataAdd additional informationPost asset details,Receive requestTransfer assetsAdjust assetsRevalue assetsCapitalise WIP assetsRepor

20、t on amendmentsWrite-off/down assets,Capitalised labour calculationDepreciation calculated Depreciation posted to GL Reconcile accountsSend monthly reports to owners,Compile accurate data for asset verificationConduct inventory checkHighlight exceptionsTrack asset history&reconcileUpdate FA register

21、&prepare GL journals,Receive requests for adhoc reportsProduce reports,Select assets to disposeObtain quote if applicableSell/dispose of assetsNotify relevant accountantsRecord transactions in accountsReconcile GL accountsCalculate profit/loss on disposal,Changes in FAPolicies and Procedures,FA regi

22、sterstructuremaintained,Updated FA Register,Updated FAregister&reports,ReconciledGL A/cs,Request for adhoc reports,Reports,Verified FARegister,Authorised GLadjustments,Assets from AP or project accounting,Asset Additionnotification,GL a/cs maintainedfor disposal,Updated FARegister,GL a/cs maintained

23、for additions,Asset addition notification,Amend/update asset types or categories,Maintain Standing Data,FA 1.1,Adjustments,Reports,Notification proceduresSystem validation controlsChange request proceduresAuthorisation rules,RequesterFA accountantFinance manager,System controlsAccounting policies,Di

24、sposal procedures,validation procedures,authorisation,reconciliation procedures,Cost centre manager,FA accounting staff,FA requester,financial manager,Reports,AP systemFA accounting staffCost centre managers,Authorisation proceduresMaintenance policySystem controls,FA accounting staffCost centre man

25、agerManagement accountant,Depreciation policiesMaintenance policiesSystems controlsMonth end reconciliationPeriod end timetableCost centre analysis,FA accounting staffFA system,Verification timetableInventory control systemAudit trialAuthorisation for write offs,FA accounting staffInventory staff,Re

26、porting guidelinesSystem controls,FA accounting staffFA systemsCost centre managers,Fixed Assets-Level 2 FA1.1 Maintain Standing Data,FA 1.11 Raise request,FA 1.12 Prepare formal request,FA 1.13 Review and approve,Sub Processes/Notes,FA 1.14 Set up new codes/data,Send request to FA accountant by e-m

27、ail with full explanation/reason for request,Evaluate request against current FA Register to identify actual need for new standing dataRaise request and attach original,Evaluate requestCommunicate acceptance or rejection to originator,Set up standing data by FA AccountantReview set-up data and codes

28、 periodically,FA 1.15 Notify affected users and groups,Changes inFA PoliciesandProcedures,Request,Formal request,Acceptedrequest,Rejected request,Actionedrequest,FA Registerstructuremaintained,Amend/updateasset typesor categories,Send formal notification of set-upNotify that request rejected and why

29、,Changerequestprocedures,Changerequestprocedures,Authorisationrules,Systemvalidationcontrols,Notificationprocedures,Requester,FA Accountant,Finance Managers,FA Accountant,FA Accountant,Fixed Assets-Notes on Maintain Standing Data,Best Practice FeaturesAsset accounting polices clearly documented;Mast

30、er Data set up on the system to reflect these policiesAppropriate coding by asset category establishedProcedures surrounding the Fixed Asset process are documented and communicated to staff including requirements for issuing new codesAsset Register Rules incorporated into Master File,which control i

31、ssues of new numbers within structured coding schemeStaff trained in Fixed Asset Accounting processes and have clear roles and responsibilities.They should have a good understanding of network and engineering areasSupervisory staff understand statutory and tax requirementsInternal Control Requiremen

32、tsOnce entered,updates should be verified against the original requestsCodes will be received from the Master File and updates will be confirmed against the Master FileThe system will check that all required data fields are completeThere must be supervisory review for Master Data updatesKey Performa

33、nce IndicatorsSpeed of update:time from receipt of request to modification and verification of records:this should not exceed one dayNumber of input errors when asset details are validated:this should be zeroCost DriversComplexity of assetsNew types of assetsNumber of changes to physical location co

34、ding,Fixed Assets-Level 2 FA1.2 Add Assets,FA 1.21 Input automatic data,FA 1.22 Input manual data,FA 1.23 Add additional information,FA 1.24 Post asset details,Sub Processes/Notes,Receive asset addition notifications from AP into FA RegisterRun interfaces with AP to transfer invoice linesTag/label a

35、sset with unique identifier,Manually enter assets which do not have invoice informationIdentify assets as;WIP;Expenses;andCapitalised assets.,Add additional asset datail to lines e.g.assign asset categories;split or merge assets;andadd to existing as cost adjustment.Assign asset lifeAssign asset to

36、departmental manager,location,Post prepared lines to fixed asset register,Assets from AP orProject Accounting,Asset additionnotification,AP lines withSkeleton details,AP lines with additional information,Added Assets,Updated FA Register,FA register structuremaintained,FA register structuremaintained

37、,GL a/c maintained for additions,System controlsAccounting policies,AccountingPolicies,SystemControls,AP SystemFA accounting staffSystem controls&accounting policies,FA accounting staff,FA accounting staff,FA accounting staffCost centre managers,Fixed Assets-Notes Add Assets,Best Practice FeaturesLi

38、nked databases used in recording asset details,to increase accuracy of the asset register and to eliminate duplicate paper trailsAppropriate asset“numbering”methods driven by users of asset information;bar coding used on relevant assetsDirect links to Project AccountingClear policy established for t

39、reatment of assets and guidance on how to classify different types of assets,to reduce the number of reclassifications neededSystem interconnection to MIS(Management Information Systems)for tax and insurance planningAssets identified by“custodian”,i.e.person who controls the asset,rather than a depa

40、rtment or the company as a wholeUnified transfer pricing in all Business Units for asset transfersUse of asset transfer strategy to optimise the usage of assetsInternal Control RequirementsAsset number controlsAll asset register updates reviewed after entry,to limit period end differencesUpdate deta

41、ils sent periodically to source and asset custodian(or other initiator of the update)for information and coroboration purposesKey Performance IndicatorsNumber of reconciliation at period end:if a reconciliation is needed between Fixed Assets and other accounts,this indicates that one or other of the

42、 accounts is not up to dateNumber of changes processedNumber of verification adjustmentsCost DriversNumber of assetsAverage useful life of assets(i.e.rate of asset turnover)Number of changes in Master Data leading to manual adjustments.(e.g.change in organisation codes)Number of revaluations/disposa

43、ls,Fixed Assets-Level 2 FA1.3 Dispose of Assets,Sales priceand buyerconfirmed,Sale/Disposalcompleted,Asset sale ordisposalregistered withAccounts dept,FARegisterupdated,Assetsidentifiedfor disposal,Asset disposalnotification,Interfaceto GL,FA 1.31 Select assets to dispose,FA 1.32 Obtain quote(if app

44、licable),FA 1.33 Sell/Dispose of Asset,FA 1.34 Notify Accountants,FA 1.36 Reconcile GL accounts,Sub Processes/Notes,Cost Centre managers identify items for disposal,Cost Centre manager to obtain quote for asset,place item in auction,or advertise as appropriate,Asset sold and monies received by Cost

45、Centre managersCost Centre managers to ensure monies received for assets as agreed or expected from auctionInvoices raised by AR for sale of assets on credit,Cost Centre managers to notify FA staff/accounts of disposals Cost Centre manager to ensure asset payment received and registered.,Ensure FA r

46、egister reconciles with asset values in GLGL maintained for DisposalsEnsure that all details of profit/loss have been recorded accurately to the correct cost centres in GL,FA accountant to update register with disposals,FA 1.35 Record Transactions in accounts,GL a/csmaintainedfor disposals,Update FA

47、register,Disposal procedures,Valuation procedures,Authorisation procedures,Disposal procedures,Disposal procedures,Reconciliation procedures,Cost centre managers,Cost centre managers,Cost centre managers,Cost centre manager,FA accounting staffFA register,FA accounting staffFinancial manager,Fixed As

48、sets-Level 2 FA1.4 Maintain Asset Register,FA 1.41 Receive Request,FA 1.42 Transfer Assets,FA 1.43 Adjust Assets,FA 1.44 Write-off/down assets,Sub Processes/Notes,FA 1.45 Revalue Assets,FA 1.46 Capitalise WIP Assets,FA 1.47 Report on adjustments,Receive request to alter fixed assets register,Transfe

49、r single asset between GL depreciation expense accounts or departmentsTransfer a group of assets between GL depreciation expense accounts or departments,Reserve adjustments i.e.adjust for accumulated depreciation for single or groups of assets,Fully or partly write off assetsCalculate gains and loss

50、es before running depreciation,Recognise go live statusCommence depreciation,Revalue assetsRun depreciation,Run reports detailing changes to FA register,Systems controls,Updated FARegister,FA accounting staffCost centre managersManagement accountant,Authorisation proceduresMaintenance policy,Asset r