In these times of increasing global convergence of standards in banking practices, the recognised need for internationally agreed codes of conduct and operation has been pushed further up the agenda, often at the behest of concerned trade and professional bodies. Leading accountants around the world for example have called on governments to step up their convergence initiatives and establish timetables for the adoption of agreed international standards as quickly as possible. One such initiative is IFRS (International Financial Reporting Standards) which covers standards, interpretations and an agreed consistent framework for the preparation and presentation of financial statements which has been adopted by the International Accounting Standards Board (IASB).
Although complex, IFRS does present an opportunity to use the fixed asset register to maximise business benefits. IFRS’ inherent reporting complexity, combined with a general increase in sheer numbers that makes asset tracking more difficult, will undoubtedly pose many challenges for financial departments. However, these new standards will, eventually, offer tangible cost efficiencies and may well be the catalyst for organisations beginning to completely re-address their asset register requirements using up to date systems with powerful asset tracking software.
Such a centralised, automated fixed asset register is vital if companies are to gain the maximum benefit from what will inevitably be a painful process of transition as the requirements of IFRS are adopted.The central asset register will not only streamline year end audits and reduce the demands made on specific staff, it will also provide the highly detailed insight into corporate assets that enables more informed decisions to be made about capital expenditure.Once they are established, the new set of IFRS standards will offer a high level of visibility across the entire fixed asset register that in turn will lead to a streamlining of processes and will enable organisations to maximise business value through achieving their full business potential while managing their resources in an economical manner.
