Practical Implementation

Fixed Asset Register: Compilation & unbundling support

February 12, 2021

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We assist and perform the following services to implement a compliant asset register support, be it on the accrual based IPSAS & GRAP standards as well as the Modified Cash basis (MCS):

  • Update the asset management policy & procedures documents
  • Physical verification of all immovable and movable assets
  • Link all assets to a Geographic Information System (GIS)
  • Asset unbundling according to a defined hierarchy
  • Asset accounting which includes additions, disposals, impairments, depreciation
  • Apply asset valuation methodologies
  • Provide audit support.

This may also include a combination of any of the following:

  • Auditing and identification of all assets that the Entity has control over.
    Componentization of assets where assets have different components with different useful lives which is material.
  • Assign and effect a unique asset identification number to every asset identified by bar-coding and capturing new assets not included in the current fixed asset register.
  • Compile a new asset register for all moveable and immoveable assets in accordance with the accounting practises.
  • Reconcile the new asset register with the current asset register and resolving of all variances.
  • Determine the remaining useful live, residual value and the physical and service condition of every asset identified.
  • Determine, where possible, the initial cost price, acquisition/ construction date of every asset identified by means of scrutinizing records. In instances where remaining useful live and/or residual values cannot be derived from records.
  • Determine the fair value of the asset by applying a suitable valuation method like market value, adjusted market value or depreciated replacement cost consistently to a group of assets.
  • Determine suitable indices to allow discounting of the current fair values for purposes of retrospective adjustment to the fixed asset register.
  • Prepare the fixed asset listing in a format suitable for import into the entities current financial system.
  • Assist the entity in successfully addressing the audit findings and qualifications on PPE as per the Auditor-General’s report.
  • Review the current Asset Management Policy and Procedures and align it to synergies with the new Asset Management System (FAR).
  • Training of and transfer of skills to identified staff.