Archive for Opinion

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.

Cost savings still the priority in green IT, says Forrester

Financial drivers and efficiency gains key factors but IT directors must be careful not to go too far, says analyst Written by Tom Young Computing, 05 Oct 2009

Assessment of environmental practices and reporting is certainly on the increase for business and generic statements about green strategies – from procurement to recycling, carbon footprint to flexible working – will not suffice in the long term: organisations will have to prove their commitment through information transparency and auditable policies.

At the heart of such transparency will be consistent, detailed information about the life cycle of every asset - from country of origin through maintenance schedules to final disposal.

Existing green policies such as the WEEE directive and measuring carbon footprints assume a level of asset management far beyond that achieved by the majority of UK business. How many UK businesses can accurately identify the location of their WEEE equipment within the organisation and confirm when it was purchased and from whom? By linking the asset register to a document management system organisations can create the required audit trail, gaining valuable insight into their own assets and adapting to the green economy.

UK firms unprepared for disaster, IDC warns. Does your business have a DR plan?

BT-commissioned research reveals the UK’s largest firms are still lacking when it comes to business continuity provision (article written by Sara Yirrell, CRN, 4th March 08)

Growing risk awareness and an increasingly dangerous business environment may have prompted more companies to invest in disaster recovery (DR) as part of the business continuity programme – but how safe is that investment?

Just what, indeed, is being recovered? Few organisations have any real insight into the true extent of their IT assets. Not only does this challenge the validity of the DR solution but it also raises huge questions in the event of an insurance claim.

For most companies, one of the major issues is the complete lack of co-ordination between the asset register recorded within finance and the inventory lists used within the IT department to determine system maintenance and support.

Any inconsistency between the asset register held within finance and other inventory records in the business will raise significant doubt for insurance companies, delaying payment at best. At worst an organisation could lose any chance of an insurance pay-out, even face charges of claiming for non existent items.

However, there are simple processes that can be followed to ensure greater information consistency. A central repository that records the serial number and asset location, as well as the value of each item, will meet the needs of all departments from finance to IT.

Critically, this ensures that reliable, accurate information is available for both insurance and DR planning, reducing business risk whilst also giving companies more confidence in their business continuity investments.

Small businesses ignorant on WEEE – is yours one of them?

A year after the laws came into force, most businesses still don’t know they exist (article by Tom Young, Computing, 12 Feb 08)

The Waste Electrical and Electronic Equipment (WEEE) Directive may be touted as a cost for suppliers, but unless organisations get their asset registers in order, it will also create a significant cost for UK business.

Such policies as WEEE assume a level of asset management far beyond that achieved by the majority of UK business. Unless supplying a like for like replacement, suppliers will only remove and dispose of equipment they have delivered initially. How many UK businesses can accurately identify the location of their WEEE equipment within the organisation and confirm when it was purchased and from whom? Without such information, just which company do they expect to handle the free disposal?

Organisations need to implement sound asset disposal procedures. Linking the asset register to a document management system will ensure a scanned WEEE certificate is linked to a disposed asset, providing the required audit trail. Each asset can be recorded alongside the supplier’s name and email address, enabling swift supplier contact when disposal is due.

UK business is already complaining about excessive red tape, perhaps why the WEEE Directive introduction in July 2007 was so downplayed. But a belief that the onus of WEEE is firmly on equipment suppliers could be an expensive mistake.