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