Course Objectives
Certificate in Fixed Assets Accounting and Management
Course Methodology
The course uses a mixture of presentations by the consultant and the participants in addition to group and individual exercises, case studies and role plays.
Course Objectives
By the end of the course, participants will be able to:
Apply the 28 point requirements to establish a whole life asset management system according to PAS 55 and ISO 55000
Evaluate investments in fixed assets according to Net Present Value (NPV), Internal Rate of Return (IRR) and other methods
Recognize and correctly measure fixed assets and intangible assets under International Financial Reporting Standards (IFRS)
Justify the accounting and reporting for transactions throughout the life of the assets
Account properly for impairment, disposals, and sales of long lived assets
Target Audience
Fixed assets professionals including supervisors, account managers, purchasing and facility supervisors and coordinators, financial controllers, new employees handling fixed assets, internal auditors, maintenance assistants and managers, and operations managers.
Target Competencies
Applying assets management
Increasing assets utilization
Making investment decisions
Formulating policies and procedures
Utilizing assets information system
Monitoring assets performance
Applying capitalization rules
Accounting for assets per IFRS
Course Outline
Asset management function
Introduction to British Standards Institute’s PAS 55
Introduction to ISO 55000
Asset management objectives
Asset management benefits
Requirements of PAS 55 for effective asset management
Risk management and asset management
Evaluating investments in assets
Making investment decisions
Time value of money
Net Present Value (NPV)
Internal Rate of Return (IRR)
Other tools for valuing investments
Fair value measurement
IFRS 13 fair value
Three level hierarchy for Fair Value (FV)
Valuation techniques under IFRS
Initial measurement of long lived assets
Measurement and recognition of fixed assets
Classes of long lived assets
Construction of tangible assets for internal use
Measurement and recognition of investment property
Measurement and recognition of intangible assets
Required disclosures
Special topics in accounting for fixed assets
Capitalization of borrowing costs
Decommissioning costs
Accounting over the life of the asset
Costs incurred subsequent to purchase
Leasehold improvements
Accounting for leased assets
Subsequent expenditures on intangibles
Accounting for assets under fair value model
Concept of component depreciation
Depreciation methods
Partial-year depreciation
Straight-line depreciation method
Units of production method
Accelerated depreciation methods
Revising depreciation rates
Impairment and disposal
Definition and rules of asset impairment
Impairment measurement and accounting
Impairment indicators and computation
Accounting for disposing or idling of assets