{"id":383,"date":"2020-12-01T15:45:27","date_gmt":"2020-12-01T15:45:27","guid":{"rendered":"https:\/\/www.cac.net.in\/blog\/?p=383"},"modified":"2020-12-11T07:05:12","modified_gmt":"2020-12-11T07:05:12","slug":"what-can-happen-with-improper-fixed-asset-management","status":"publish","type":"post","link":"https:\/\/www.cac.net.in\/blog\/what-can-happen-with-improper-fixed-asset-management\/","title":{"rendered":"What can happen with improper fixed asset management?"},"content":{"rendered":"\n<p>Having fixed assets well managed throughout their life\ncycle, obtaining the specified returns, in a safe and environmentally\nresponsible manner, creates value and offers a clear competitive advantage for\nthe company.<\/p>\n\n\n\n<p>Today&#8217;s complexity and speed of change directly affects the\nfixed assets of organizations. Therefore, particularly active-intensive\ncompanies, need to coordinate their activities, with well-defined procedures\nand processes, obtaining traceability, updated information, proper use and\ncompliance with standards, that is, achieving a balance between costs, risks\nand benefits of their performance.<\/p>\n\n\n\n<p>Fixed assets are considered as all those goods (property,\nfurniture and equipment; according to the name established in the International\nAccounting Standard) that comply with the parameters set in the IAS and the\nIFRS (International Financial Reporting Standards).<\/p>\n\n\n\n<p>In most cases, these represent the majority of the value of a company, in accounting terms.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"750\" src=\"https:\/\/www.cac.net.in\/blog\/wp-content\/uploads\/2020\/12\/Fixed-Asset-Management-Companies-CAC_1.jpg\" alt=\"\" class=\"wp-image-384\" srcset=\"https:\/\/www.cac.net.in\/blog\/wp-content\/uploads\/2020\/12\/Fixed-Asset-Management-Companies-CAC_1.jpg 750w, https:\/\/www.cac.net.in\/blog\/wp-content\/uploads\/2020\/12\/Fixed-Asset-Management-Companies-CAC_1-150x150.jpg 150w, https:\/\/www.cac.net.in\/blog\/wp-content\/uploads\/2020\/12\/Fixed-Asset-Management-Companies-CAC_1-300x300.jpg 300w, https:\/\/www.cac.net.in\/blog\/wp-content\/uploads\/2020\/12\/Fixed-Asset-Management-Companies-CAC_1-230x230.jpg 230w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n\n\n\n<p>According to the rules established in the IAS, goods can be\nconsidered as fixed assets only when it can be determined that:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>They are elements used by an entity for the\nproduction of goods and\/or services, for administrative procedures or leasing\nto third parties;<\/li><li>For more than one accounting period.<\/li><\/ul>\n\n\n\n<p>Furthermore, assets will only be considered fixed when:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>There is the possibility of obtaining future\nbenefits on them and\/or derivatives thereof.<\/li><li>Its amount can be reliably determined.<\/li><\/ul>\n\n\n\n<p><strong>Problems derived from\npoor management of fixed assets.<\/strong><\/p>\n\n\n\n<p>It is of utmost importance to maintain an exhaustive control of the property, plant and equipment to avoid the most common problems of equity inventory, such as: their accounting, the determination of their book price and the charges related to depreciation, losses and deterioration of the same, to avoid these things, we suggest you to contact <strong><a href=\"https:\/\/www.cac.net.in\/fixed-asset-management\">fixed asset management companies in India<\/a><\/strong>.<\/p>\n\n\n\n<p>Otherwise, you could face significant inconveniences, beyond\naccounting issues, such as the following:<\/p>\n\n\n\n<p>Inventory uncertainty: By not having a frequent control\nmethod, the loss of assets can occur; as well as, also, the appearance of extra\nexpenses for the company, due to delayed maintenance and unnecessary\nreplacements thereof. <\/p>\n\n\n\n<p>The fact that, for almost any business, the items of\nproperty, plant and equipment represent the majority of its book value, denotes\nthe sensitivity of having a problem of these characteristics.<\/p>\n\n\n\n<p>Excessive consumption of human and financial resources: It\nis clear that the traceability of fixed assets can be a real headache, if you\ndo not have the proper system. <\/p>\n\n\n\n<p>The inventory of assets requires paying a team of people or\nassigning workers from your payroll to perform these functions, to the\ndetriment of their original assignments. <\/p>\n\n\n\n<p>Doing this several times a year can lead to a huge headache\nand expense that can be reduced by consulting fixed asset management companies.<\/p>\n\n\n\n<p>Lack of knowledge of the status or location of your assets:\nFixed assets, like everything else, have a useful life that can be extended\nwith proper maintenance. <\/p>\n\n\n\n<p>However, this becomes very difficult to program, when the\nprocesses are done within the company, leading to the accumulation of damaged\ngoods and, added to this, the lack of certainty in their location.<\/p>\n\n\n\n<p>Tax problems: Investment in fixed assets is tax-regulated.\nThis means that if you do not have control over the acquisitions of your\nbusiness or the productive state of your assets, you could face problems with\nthe collection office.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Having fixed assets well managed throughout their life cycle, obtaining the specified returns, in a safe and environmentally responsible manner, creates value and offers a clear competitive advantage for the company. Today&#8217;s complexity and speed of change directly affects the fixed assets of organizations. Therefore, particularly active-intensive companies, need to coordinate their activities, with well-defined&#8230;<\/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":[12,116,117,115],"class_list":["post-383","post","type-post","status-publish","format-standard","hentry","category-fixed-asset-management","tag-fixed-asset-management-companies-in-india","tag-fixed-assets-well-managed","tag-importance-of-fixed-asset-management","tag-improper-fixed-asset-management"],"_links":{"self":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/383","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=383"}],"version-history":[{"count":1,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/383\/revisions"}],"predecessor-version":[{"id":385,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/383\/revisions\/385"}],"wp:attachment":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/media?parent=383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/categories?post=383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/tags?post=383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}