企业财务基础知识培训教材.pptx

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1、Best Practice Financial Processes: Fixed Assets2PwC175Fixed Assets - Best Practice ObjectivesFixed AssetsObjectivesTo maintain a complete register of all the organisations fixed assets which reflects location, age, current values, associated cost centresTo calculate depreciation consistently with fi

2、nancial reporting requirementsTo optimise replacement policiesTo minimise ownership costsOrganisationAsset recording integrated with maintenance and non financial dataCentralised asset accountingAsset ownership devolved to business unit levelPeopleControl focusedChallenge asset requisition proposals

3、ProcessesMaintain asset registerAcquisitions and disposalsDepreciation chargeVerifying asset baseMaintaining of valuation basisControlsAsset verificationAsset valuationAcquisition and disposal authoritiesMeasuresNumber of assets maintainedCost of departmentElapsed time to record assetInformation Sys

4、temsAsset ledgers integrated with GL and APDepreciation and project control by cost centreAutomated depreciation calculation3PwC175Maintain fixedasset registerControl acquisitionsand disposalsManage periodicasset depreciationVerify and valueasset baseProcess FeaturesDetermine asset categories for in

5、ternal and statutory purposesMonitor asset maintenance chargesApply insurance valuation to key assetsEnsure asset responsibility at BU levelIdentify asset usage Set up appropriate control of asset acquisition and disposals across companyReport on acquisitions and disposals on a monthly basisMonitor

6、tax issues related to acquisitions or CIPEnsure BU responsibility for assets in their use and for disposal lossesDepreciate at point of asset useApply depreciation rules to asset classesDepreciation rates in management accounts in line with statutory ratesLinks asset depreciation to production and p

7、roduct costs/developmentRevalue key assets on a regular basis based on book value and high riskComprehensive asset verification on regular periodic or rolling basis where asset cannot be verified via technical assumptions (most telcos do not verify network assets: the fact that the network works is

8、verification enough)Verify non capitalised assetsSystem FeaturesOn line asset register holding key data and current cost allocationCost code validation with GLAutomatic links to AP and Project Accounting system to capture acquisitionsRevaluation of features and mass transfers of assets to new cost c

9、entresLeased asset features compliant with accounting standardsAcquisition linked to purchase order and accounts payable ledgerDisposals linked to sales ledgerCIP linked to capital project accountingEffective tax management integrated with the fixed assets systemDepreciation charged automatically to

10、 cost centres in GLForecast asset depreciation for budget purposesVariable depreciation rules for classes of assetsAssets can be grouped for depreciation rulesVariable asset valuation mechanisms eg historic, current replacementComplete asset reports by physical location and cost centreReport on iden

11、tified or missing assetsHold non capitalised physical assists for verificationBar coding of assets for verificationFixed Assets - Best Practice Features4PwC175Fixed Assets - Measures/Cost DriversNo of Business Unit FTEs per Fixed Assets FTE90 percentileMedian10 percentile5,2001,40035010 percentileMe

12、dian90 percentile731151Cost driversFixed Assets cost per Business Unit FTE (in s)Median14 days90 percentile40 days10 percentile1 dayFixed Assets processing timeComplexity of assetsNumber of assets on registerNumber of asset movementsComplexity of depreciation policiesComplexity of authorisation proc

13、eduresRange of data heldNumber of users of data rangeSource: Statistics taken from Benchmarking database: 21 February 19975PwC175Separate fixed assets moduleLack of asset ownershipCost of asset usage not attributed to productPerformed by Finance DepartmentIntegrated systems for: Asset tracking via G

14、eographical Information System (GIS) Asset usage Network Capacity Planning Asset Maintenance Capital project planning and control Product/service costingBU responsibility for ownershipFromToFixed Assets - Trends6PwC175Fixed Assets - Critical Success FactorsThese are a summary of the key business req

15、uirements, which must be met to achieve the objectives.Asset accounting policies clearly documentedAppropriate coding by asset category establishedAuthority levels clearly definedProcedures surrounding Fixed Asset process are documented and communicated to staffBudgets in place for capital expenditu

16、reAll existing assets identified and classifiedStaff trained in FA process and have clear roles and responsibilitiesStatutory and tax requirements understoodFA calendar in place and communicated to staffStanding data set up on the system reflecting asset accounting policiesAbility to model depreciat

17、ion scenario7PwC175InventoryAccounts PayableAuditProject accountingPurchasingGeneral LedgerFixed AssetsFixed Assets - Level 0 Context DiagramAsset data (depreciation etc)Goods issuedAsset details& asset paymentsMgt ReportsStatutory reportsAsset disposalsCapitalised assetsCommitmentsUnique asset iden

18、tifierManagement AccountingAccounts receivableMaintenanceMaintenace CycleCircuit ProvisioningUsage data8PwC175Fixed Assets - Level 1 OverviewFA 1.1 Maintain Standing DataFA 1.2 Add AssetsFA 1.3 Dispose of AssetsFA 1.4 Maintain Asset RegisterFA 1.5 Perform Period End RoutinesFA 1.6 Verify Physical As

19、setsActivitiesFA 1.7 Answer Adhoc queriesRaise request e.g. new asset classPrepare formal requestReview and approve Set up new codes / dataNotify affected users and departmentsInput automatic dataInput manual dataAdd additional informationPost asset detailsReceive requestTransfer assetsAdjust assets

20、Revalue assetsCapitalise WIP assetsReport on amendmentsWrite - off / down assetsCapitalised labour calculationDepreciation calculated Depreciation posted to GL Reconcile accountsSend monthly reports to ownersCompile accurate data for asset verificationConduct inventory checkHighlight exceptionsTrack

21、 asset history & reconcileUpdate FA register & prepare GL journalsReceive requests for adhoc reportsProduce reports Select assets to disposeObtain quote if applicableSell / dispose of assetsNotify relevant accountantsRecord transactions in accountsReconcile GL accountsCalculate profit/loss on dispos

22、alChanges in FAPolicies and ProceduresFA registerstructuremaintainedUpdated FA RegisterUpdated FAregister &reportsReconciledGL A/ csRequest for adhoc reportsReportsVerified FARegisterAuthorised GLadjustmentsAssets from AP or project accountingAsset AdditionnotificationGL a/ cs maintainedfor disposal

23、Updated FARegisterGL a/cs maintainedfor additions Asset addition notificationAmend/update asset types or categoriesMaintain Standing DataFA 1.1Add AssetsFA 1.2Dispose of AssetsFA 1.3Maintain Asset RegisterFA 1.4Verify Physical AssetsFA 1.6Answer Adhoc QueriesFA 1.7AdjustmentsReportsNotification proc

24、eduresSystem validation controlsChange request proceduresAuthorisation rulesRequesterFA accountantFinance managerSystem controlsAccounting policiesDisposal procedures, validation procedures, authorisation, reconciliation proceduresCost centre manager, FA accounting staff,FA requester, financial mana

25、gerReportsAP systemFA accounting staffCost centre managersAuthorisation proceduresMaintenance policySystem controlsFA accounting staffCost centre managerManagement accountantDepreciation policiesMaintenance policiesSystems controlsMonth end reconciliationPeriod end timetableCost centre analysisFA ac

26、counting staffFA systemVerification timetableInventory control systemAudit trialAuthorisation for write offsFA accounting staffInventory staffReporting guidelinesSystem controlsFA accounting staffFA systemsCost centre managersPerform Period End RoutinesFA 1.59PwC175Fixed Assets - Level 2 FA1.1 Maint

27、ain Standing DataFA 1.11 Raise requestFA 1.12 Prepare formal requestFA 1.13 Review and approveSub Processes / NotesFA 1.14 Set up new codes / dataSend request to FA accountant by e-mail with full explanation / reason for requestEvaluate request against current FA Register to identify actual need for

28、 new standing dataRaise request and attach originalEvaluate requestCommunicate acceptance or rejection to originatorSet up standing data by FA AccountantReview set-up data and codes periodicallyFA 1.15 Notify affected users and groupsChanges inFA PoliciesandProceduresRequestFormal requestAcceptedreq

29、uestRejected requestActionedrequestFA RegisterstructuremaintainedAmend/updateasset typesor categories Raise requestFA 1.11Prepare formal requestFA 1.12Set up new codes / dataFA 1.14Notify affected users & groupsFA 1.15Send formal notification of set-upNotify that request rejected and whyChangereques

30、tproceduresChangerequestproceduresAuthorisationrulesSystemvalidationcontrolsNotificationproceduresRequesterFA AccountantFinance ManagersFA AccountantFA AccountantReview and approveFA 1.1310PwC175Fixed Assets - Notes on Maintain Standing DataBest Practice FeaturesAsset accounting polices clearly docu

31、mented; Master Data set up on the system to reflect these policiesAppropriate coding by asset category establishedProcedures surrounding the Fixed Asset process are documented and communicated to staff including requirements for issuing new codesAsset Register Rules incorporated into Master File, wh

32、ich control issues of new numbers within structured coding schemeStaff trained in Fixed Asset Accounting processes and have clear roles and responsibilities. They should have a good understanding of network and engineering areasSupervisory staff understand statutory and tax requirementsInternal Cont

33、rol RequirementsOnce entered, updates should be verified against the original requestsCodes will be received from the Master File and updates will be confirmed against the Master FileThe system will check that all required data fields are completeThere must be supervisory review for Master Data upda

34、tesKey Performance IndicatorsSpeed of update: time from receipt of request to modification and verification of records: this should not exceed one dayNumber of input errors when asset details are validated: this should be zeroCost DriversComplexity of assetsNew types of assetsNumber of changes to ph

35、ysical location coding11PwC175Fixed Assets - Level 2 FA1.2 Add AssetsFA 1.21 Input automatic dataFA 1.22 Input manual dataFA 1.23 Add additional informationFA 1.24 Post asset detailsSub Processes / NotesReceive asset addition notifications from AP into FA RegisterRun interfaces with AP to transfer i

36、nvoice linesTag/label asset with unique identifierManually enter assets which do not have invoice informationIdentify assets as ; WIP;Expenses; andCapitalised assets.Add additional asset datail to lines e.g.assign asset categories;split or merge assets; andadd to existing as cost adjustment.Assign a

37、sset lifeAssign asset to departmental manager, location Post prepared lines to fixed asset registerAssets from AP orProject AccountingAsset additionnotificationAP lines withSkeleton detailsAP lines with additional informationAdded AssetsUpdated FA RegisterFA register structuremaintainedFA register s

38、tructuremaintainedGL a/c maintained for additionsInput automatic dataFA 1.21Add additional informationFA 1.23Post asset detailsFA 1.24Input manual dataFA 1.22System controlsAccounting policiesAccountingPoliciesSystemControlsAP SystemFA accounting staffSystem controls & accounting policiesFA accounti

39、ng staffFA accounting staffFA accounting staffCost centre managers12PwC175Fixed Assets - Notes Add AssetsBest Practice FeaturesLinked databases used in recording asset details, to increase accuracy of the asset register and to eliminate duplicate paper trailsAppropriate asset “numbering” methods dri

40、ven by users of asset information; bar coding used on relevant assetsDirect links to Project AccountingClear policy established for treatment of assets and guidance on how to classify different types of assets, to reduce the number of reclassifications neededSystem interconnection to MIS (Management

41、 Information Systems) for tax and insurance planningAssets identified by “custodian”, i.e. person who controls the asset, rather than a department or the company as a wholeUnified transfer pricing in all Business Units for asset transfersUse of asset transfer strategy to optimise the usage of assets

42、Internal Control RequirementsAsset number controlsAll asset register updates reviewed after entry, to limit period end differencesUpdate details sent periodically to source and asset custodian (or other initiator of the update) for information and coroboration purposesKey Performance IndicatorsNumbe

43、r of reconciliation at period end: if a reconciliation is needed between Fixed Assets and other accounts, this indicates that one or other of the accounts is not up to dateNumber of changes processedNumber of verification adjustmentsCost DriversNumber of assetsAverage useful life of assets (i.e. rat

44、e of asset turnover)Number of changes in Master Data leading to manual adjustments.(e.g. change in organisation codes)Number of revaluations / disposals13PwC175Fixed Assets - Level 2 FA1.3 Dispose of AssetsSales priceand buyerconfirmedSale/DisposalcompletedAsset sale ordisposalregistered withAccount

45、s deptFARegisterupdatedAssetsidentifiedfor disposalAsset disposalnotificationInterfaceto GLFA 1.31 Select assets to dispose FA 1.32 Obtain quote (if applicable)FA 1.33 Sell / Dispose of AssetFA 1.34 Notify Accountants FA 1.36 Reconcile GL accountsSub Processes / NotesCost Centre managers identify it

46、ems for disposal Cost Centre manager to obtain quote for asset, place item in auction, or advertise as appropriate Asset sold and monies received by Cost Centre managersCost Centre managers to ensure monies received for assets as agreed or expected from auctionInvoices raised by AR for sale of asset

47、s on creditCost Centre managers to notify FA staff /accounts of disposals Cost Centre manager to ensure asset payment received and registered.Ensure FA register reconciles with asset values in GLGL maintained for DisposalsEnsure that all details of profit / loss have been recorded accurately to the

48、correct cost centres in GL FA accountant to update register with disposalsFA 1.35 Record Transactions in accountsSelect assets to disposeFA 1.31Obtain quote (if applicable)FA 1.32Sell/dispose of assetsFA 1.33Notify financeFA 1.34Reconcile GL accountsFA 1.36GL a/csmaintainedfor disposalsUpdate FAregi

49、sterDisposal proceduresValuation proceduresAuthorisation proceduresDisposal proceduresDisposal proceduresReconciliation proceduresCost centre managersCost centre managersCost centre managersCost centre managerFA accounting staffFA registerFA accounting staffFinancial managerRecord transactions in ac

50、countsFA 1.3514PwC175Fixed Assets - Level 2 FA1.4 Maintain Asset RegisterFA 1.41 Receive RequestFA 1.42 Transfer Assets FA 1.43 Adjust AssetsFA 1.44 Write-off / down assetsSub Processes / NotesFA 1.45 Revalue AssetsFA 1.46 Capitalise WIP AssetsFA 1.47 Report on adjustmentsReceive request to alter fi