Asset Management and Pas 55: Maximizing Returns from Capital Investments

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Asset Management and Pas 55: Maximizing Returns from Capital Investments Course
Introduction:
Fixed assets management and accounting play a crucial role in organizations as they are significant resources used for production and generating future benefits. This course focuses on the management and accounting of fixed assets according to the British Standard Institute Publicly Available Standard (PAS 55). The course covers the 28 points of PAS 55, which encompass fixed assets policy, strategy, management enablers and controls, implementation of management plans, performance assessment and improvement, and management review. It addresses the entire life cycle of fixed assets, from creation or acquisition to utilization, maintenance, and eventual renewal or disposal. Decision-making tools such as NPV, IRR, and capital budget comparative tools are discussed for asset acquisition, replacement, or refurbishment decisions. The accounting aspect is based on International Financial Reporting Standards (IFRS), specifically IFRS 16 for property, plant, and equipment, and IFRS 38 for intangibles. The course covers capitalization rules, fair value measurement, various depreciation methods, and asset impairment rules and accounting.
Course Objectives:
At the end of this program, delegates will be able to make a substantial, positive impact on the asset management best practices within their organization, specifically:
- 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
- A step-by-step guide to asset management - starting with foundations and building up to best practice
- A solid understanding of best practice techniques for achieving effective asset management
- An understanding of a range of technical and human risks associated with asset management and how they can be mitigated
- The ability to design a tailored asset management improvement plan for their organization which tackles the major risk areas
- A practical approach to developing an action plan to utilize these technologies in their own areas of responsibility, fitting them into the overall asset management strategy, and measuring benefits
Who Should Attend?
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.
Course Outlines:
ASSET MANAGEMENT FUNCTION
- Introduction to the 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