Course Overview

What is Fixed Asset Accounting and Management? In accounting, assets are economic resources or anything of value that is owned by the business and can be measured in monetary terms. Assets help in generating revenue for the business.

No business- whether service or manufacturing concern- can operate without ownership of assets. A manufacturing plant will need machineries like mixers, centrifuges, generators, forklift, and such. A coffee shop would need coffee grinders, blenders, ovens and toasters.

For an IT firm computer software are necessary assets. A well-functioning hospital would need beds, patient monitors, defibrillators, infusion pumps, etc. In short, any business imaginable would need an asset of some kind or another to perform its basic operations, incur sales, generate revenue and ultimately survive in the industry.

Assets can be classified into various categories; however, most popular classification is done on the basis of duration held, current assets and fixed assets. Current assets include items that are either cash or can be converted into cash within a year. Examples of current assets are cash inventory, debtors, etc. On the other hand, fixed assets are of permanent nature.

Fixed assets are acquired into business with a view that they’ll benefit the firm for many years to come and generally have life for more than a year. Assets are valuable and create value for the business. Businesses dedicate a huge amount of capital to acquiring and maintaining fixed assets.

It becomes vital to keep a precise track of all assets and to manage them in a manner that they’ll generate best possible returns. Fixed Asset accounting keeps a proper account of all fixed assets in business. This allows the management to get a fair and accurate standing of financial statements.

Fixed asset accounting guides towards rightful posting, treatment and valuation of fixed assets in the books of account. Fixed asset management is a much broader term that aims at minimising risks and maximising the returns associated with fixed assets of the business by ensuring its judicious use.

What will be the criteria for defining fixed assets? How will the purchase of fixed assets be recorded in the books of business? How will these assets be capitalized? What manner of depreciation will be applied to the assets? What will be the procedure for the valuation of fixed assets?

How will organizational responsibilities be established for managers in fixed asset management? These are some technical questions that might prove difficult for the management to work out if they are not mindful of various specifics involved in the handling of fixed assets.

Fixed asset accounting is a subset of financial accounting but in recent years has emerged as a specialized area of its own as its importance is being recognized by the accounting fraternity.

Investing vigorously in fixed assets won’t translate into success if the business doesn’t acknowledge the best practices to manage it. Therefore, it becomes significant for managers to be well informed of the subject matter.

Zoe Talent Solutions has introduced Fixed Asset Accounting and Management course to help its participants understand various issues in fixed assets. Participants will be able gather latest insights into fixed asset management through this course.

They’ll be able to grasp various concepts, techniques and best practices related to the subject matter. This course is a must for any professional looking to broaden their horizon in the field of financial accounting and financial management.

Course Objectives

On successful completion of the Fixed Asset Accounting and Management course, participants shall be able to:

• Understand various concepts and terminologies related to fixed assets accounting and management
• Realise the importance of judicious consumption of fixed assets to increase profitability
• Learn about techniques, framework and treatment of fixed assets in the books of account
• Gain an understanding regarding various methods of acquisition of assets and manage costs related to them
• Know how efficient management of assets can avoid delay in production and allow the smooth running of operations
• Comprehend how fixed asset management can be used to give maximum returns to the stakeholders of the business

Training methodology

This is a collaborative Fixed Asset Accounting and Management training program and will comprise the following training approaches:

• Interactive lecture sessions
• Problem-solving sessions
• Presentations
• Case studies
• Group discussion
• Management games

Zoe Talent Solutions follows the ‘Do-Review-Learn-Apply’ model.

Organisational Benefits

On successful completion of the Fixed Asset Accounting and Management course, participants shall be able to benefit their organization in the following ways:

• Establish responsibilities of managers for better management and control of fixed assets
• Achieve accurate valuation of fixed assets and hence gain true picture of the firm’s financial position
• Efficient tracking of tangible assets
• Use correct methodologies for the purpose of depreciation and amortization
• Ensure timely replacement of assets upon their obsolescence or end of economic life
• Establish best procedures for the purpose of up-gradation, improvements, maintenance of fixed assets and manage costs associated with it
• Help in the identification of risks associated with certain assets and managing them

Personal Benefits

Successful completion of Fixed Asset Accounting and Management course, shall benefit participants in the following ways:

• Deepen their understanding of financial accounting and draw a parallel between financial accounting and fixed accounting
• Sharpen their accounting skills by gaining knowledge of accounting treatments, posting, methods and techniques of fixed assets posting and recording
• Gain practical experience by solving numerical exercises and case studies
• Gain a cutting edge over your peers by acquiring advanced knowledge on the subject
• Be efficient at preparing financial reports
• Enhance your decision making and risk management skills

Who should attend?

• Fixed asset professionals/supervisors/account managers
• Financial managers
• Accountants
• Purchasing and facility supervisors/coordinators
• Budding entrepreneurs, start-up founders
• Departmental heads, managers, executives
• Financial analysts
• Internal auditors
• Investors
• Maintenance managers/assistants

Course Outline

Module 1: Introduction to asset accounting

• Asset reporting, financial reporting
• Classification of assets
• Asset inventory
• Need for fixed asset accounting
• Accounting treatment of fixed assets

Module 2: Asset valuation

• Asset valuation approaches: Absolute value models, Relative value models
• Appraised value, book value
• Valuing repairs, maintenance, additions
• Valuation of land, building, etc.

Module 3: Asset continuity planning

• Factors in continuity planning
• Planning schedule
• Cost schedule
• Gap analysis

Module 4: Depreciation

• Rationale for depreciation
• Factors affecting depreciation expenses- salvage value, acquisition cost
• Methods for calculating depreciation- straight-line method, written down method, etc.

Module 5: Records and maintenance

• Fixed asset tracking
• Asset lifecycle management
• Asset labelling
• Maintenance management

Module 6: Transfer of assets

• Types of transfers
• Departmental transfers
• Interdepartmental transfers
• Retirement and disposal

Module 7: Intangible assets

• Type of intangible assets
• Difference between accounting for tangibles and intangibles
• Amortization
• Valuation
• Accounting treatment of intangible assets

Module 8: Fixed asset management

• Concept of fixed asset management
• Measuring fixed assets efficiency- turnover ratios
• Fixed asset life cycle management and life cycle costing