Why do I need an Asset Register
According to Wikipedia, A Fixed Asset Register (FAR) is an accounting method used for major resources of a business. Fixed assets constitute a major chunk of the total assets in the case of all manufacturing entities and service / retail entities such as hotels, banks, financial institutions, retail groups and shopping malls etc.
- For the Facilities Maintenance Department a complete asset register is essential to as to plan maintenance operations, know the function of each plant item in relation to its usage within the company and to be certain that All plant is maintained to the highest standards. Knowing the age of plant assets allows for future planning for replacement.
- For the Finance Department being able to calculate the current value of assets is essential for annual company returns and valuations are required in many contexts including investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability, and in litigation. Working with Facilities allows both departments to both future plan budgets and also control the current spend. Asset registers support the annual accounts and so are subject to audit by an auditor.
- For the Companies Officers , knowing the state and value of fixed assets is essential for operations, future planning and reporting to shareholders. A current Asset Register is also required if the company hopes to acheive ISO 14000 acreditation.
Asset Register Compilation
1. Inventory:
Physically locate all items of plant and add their details inc. photo to the asset register.
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2. Visual Condition Assessment:
is a method of determining asset condition by looking for any signs of physical damage or indication of potential problems, (leaks, noise, etc.). All such issues will be noted and photographed.
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3. Criticality:
Criticality is a measure of the likelihood and consequence of failure. Critical assets should be identified and an 'Action Plan' designed for each in the event of unexpected failure.
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4. Maintenance Schedule:
If there is already a maintenance schedule in place, we can review and comment on it. Otherwise where none exists we can build a schedule that will work for both your organisation and contractors.
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5. Valuation:
Following the condition assessment and expected lifespan of plant items, a valuation can be determined with the finance department for all items on the asset register.
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Contact us to see how Compass can remove the 'pain' of compiling an asset register with your own resources.
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Tel: 021-4928946 
Tel: 0121-2851942 