The public sector is facing up to IFRS and seizing the opportunity to utilise the asset register to maximise business benefits.

In a recent article published on AccountingWeb titled ‘Consultation launched for new IFRS council accounting code’, it was confirmed that CIPFA/LASAAC, the board responsible for the introduction of international financial reporting standards (IFRS) in local authorities has begun a consultation on the IFRS-based code of practice on local authority accounting.

It’s true that the new IFRS reporting complexity combined with an extraordinary increase in asset numbers does present a series of challenges to financial departments. But the new standards will in time offer tangible business benefits and increased cost efficiencies which will make any disruption caused during this transitionary period, as organisations completely readdress their asset register requirements, seem like a very necessary catalyst leading ultimately to a far more productive time.

A centralised, automated asset register is key if Public Sector organisations are to reap the maximum benefits. This vital tool will not only streamline year end audits and reduce the reliance on specific, skilled personnel but will also provide the detailed insight into corporate assets required to enhance capital expenditure decision making and improve Local Authorities’ Comprehensive Performance Assessment (CPA) scores.

There is little doubt that the shift to IFRS poses a major challenge for the public sector. But, best practice, improved understanding and control over the asset register will enable organisations to make far more informed decisions about capital expenditure and replacement budgeting – decisions that will have a measurable impact on CPA scores and audit reports.

Once established, this new set of standards will offer an astonishing level of visibility throughout the fixed asset register, maximising business value, streamlining processes and allowing organisations across the public sector to achieve their full business potential through the prudent management of resources.