Solutions

Project Cost Allocation & Asset Register Establishment

Example of Asset Register

 

Establishing an Asset Register

Mitchell & Taylor’s valuers have undertaken major greenfield and brownfield capital cost allocation projects. Each of these projects involved:

 

  • the physical identification of all assets and the creation of a new fixed asset register
  • an overall project cost apportionment based upon the dissemination of invoices, capital expenditure requests and cost research
  • a total useful life estimate for each asset for tax and accounting depreciation
  • specific projects required each asset was attached with a unique barcode

 

The projects realised the following benefits for our clients:

 

  • The allocation of the total costs to individual assets for adoption of the accounting standard AASB 116 Property, Plant and Equipment
  • The establishment of consistent and accurate asset data with a link to the physical asset through a unique barcode
  • Future cost savings associated with undertaking regular asset stocktakes
  • Enhanced asset identification for the allocation of future sustaining capex and for the future recognition of specific asset disposals or write-offs
  • Accounting and tax depreciation was accurately measured through the independent determination of a total useful life for each asset