{"id":151,"date":"2020-03-16T05:12:28","date_gmt":"2020-03-16T05:12:28","guid":{"rendered":"https:\/\/www.cac.net.in\/blog\/?p=151"},"modified":"2024-10-11T17:35:06","modified_gmt":"2024-10-11T12:05:06","slug":"fixed-asset-management-the-main-concepts","status":"publish","type":"post","link":"https:\/\/www.cac.net.in\/blog\/fixed-asset-management-the-main-concepts\/","title":{"rendered":"Fixed Asset Management: The Main Concepts"},"content":{"rendered":"\n

Thanks to the process approach, it is\npossible to manage the entire life cycle of a fixed asset: acquisition\nplanning, purchase or creation, commissioning, inspection, maintenance,\nrepairs, disposal and liquidation. <\/p>\n\n\n\n

To do this, there is a class of tasks for\nmaintenance and repair (MRO), or rather, the management of fixed assets\n(physical assets), Enterprise Asset Management.<\/p>\n\n\n\n

Fixed assets are part of the company’s\nassets and by their nature have a positive economic value. Indeed, it should be\nremembered that the balance sheet reflects, at a given time, the situation of\nthe company and that it consists of assets and liabilities. Among the assets, a\ndistinction is made between fixed assets, i.e. accounting fixed assets, and\ncurrent assets.<\/p>\n\n\n\n

The management of fixed assets corresponds\nto the management of all the assets of a structure (company, association,\ncommunity, etc.). This article, therefore, takes up the main definitions\nencountered in fixed asset management.<\/p>\n\n\n\n

\"fixed<\/figure>\n\n\n\n

What is an\nasset in asset management?<\/strong><\/p>\n\n\n\n

In fixed asset management, an asset is a\nset of goods or rights constituting an asset. The balance sheet includes fixed\nassets (goods remaining in the portfolio for a long time (more than 1 year) and\ncurrent assets (goods temporarily remaining in the portfolio). Current assets\ncorrespond to stocks (raw materials, goods), receivables and investment\nsecurities.<\/p>\n\n\n\n

The different\nconcepts of fixed assets<\/strong><\/p>\n\n\n\n

According to fixed asset management companies<\/strong><\/a>, an accounting asset is a property, arrangement or acquired right which is property of the entity (administration, association or company). It will also remain in the heritage for over a year. The accounting fixed assets include the fixed assets at the balance sheet level. They are divided into 3 categories: intangible assets, tangible assets, financial assets.<\/p>\n\n\n\n

In addition, a fixed asset in progress is a\ntangible or intangible asset that is not generally completed at the year-end\ndate. It is most often formed by grouping invoices that arrive with a time lag.\nThese are often complex assets, constructions or works for which there is a\nsignificant gap between the first costs incurred and commissioning.<\/p>\n\n\n\n

Also, fixed production refers to fixed\nassets created by the entity itself. The fixed value then corresponds to the\nproduction cost consisting of the cost of purchasing raw materials, study\ncosts, labour, etc.<\/p>\n\n\n\n

Immobilization\nor charge?<\/strong><\/p>\n\n\n\n

The criteria for differentiating between a\nfixed asset and an expense related to the acquisition value and the period of\nuse. It also remains less than a year in the heritage of the entity. It is\noften a consumable.<\/p>\n\n\n\n

Asset and\ncomponent management<\/strong><\/p>\n\n\n\n

A component is a subset of an asset, the amount of which must be significant. As told by fixed asset management companies in India, its useful life must also be different from the other components of this same active ingredient. Accounting does not define a specific threshold.<\/p>\n\n\n\n

By use, a component corresponds to at least\n20 – 25% of the total value of the asset. The useful life corresponds to the\nduration of use of the asset in the context of the entity’s operation. In\naddition, the breakdown into components only occurs on assets of significant\nvalue (constructions, complex industrial assets, etc.).<\/p>\n","protected":false},"excerpt":{"rendered":"

Thanks to the process approach, it is possible to manage the entire life cycle of a fixed asset: acquisition planning, purchase or creation, commissioning, inspection, maintenance, repairs, disposal and liquidation. To do this, there is a class of tasks for maintenance and repair (MRO), or rather, the management of fixed assets (physical assets), Enterprise Asset…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-151","post","type-post","status-publish","format-standard","hentry","category-fixed-asset-management"],"_links":{"self":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/comments?post=151"}],"version-history":[{"count":2,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/151\/revisions"}],"predecessor-version":[{"id":154,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/151\/revisions\/154"}],"wp:attachment":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/media?parent=151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/categories?post=151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/tags?post=151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}