Develop and maintain a physical asset register Develop strategies for managing physical assets THHGGA08B Session 1a

Objectives Today Introduce outline for unit Establish timelines for assessments Develop Knowledge of assets

At the end of this session you should be able to: Identify and Explain non-current assets Identify and develop an asset register Develop strategies for managing physical assets

What are non-current assets A non-current asset is an asset which is expected to be held for a period exceeding 12 months. There are 3 types of non-current assets: Tangible Assets Intangible Assets Long Term Investments

Tangible Assets Also called fixed assets, these are assets that can be seen and touched. Examples of fixed assets are: Motor Vehicles Plant & Equipment Office Furniture & Equipment Property

Intangible Assets Are assets that have no physical existence; Goodwill Trademarks Copyrights Patents

Long Term Investments Investments for a period in excess of 12 months. Eg, Shares in other companies Bonds & debenture Stock Preference Shares Government Bonds

What is an Asset Register An asset register is a register / book where all the fixed costs are recorded. The asset register will contain the following information:

Asset Register Date of purchase for asset Description of asset Serial Number Asset number allocated by administration (usually incorporates 3 letters that identifies the department and the last 4 digits of the serial number) Date of end of life expectancy

Asset Register cont.. Depreciation rate Total capital cost Annual depreciation amount Total depreciation expensed to date Written down value Lecturer to explain each point in detail How is depreciation arte determined (Australian Taxation Office has guidelines for depreciation schedules) Align depreciation to useable lifespan and financing strategy.

Aligning the General Ledger & The Asset register The general ledger and the asset register have to reconcile in the following: Total of fixed assets in the general ledger has to balance to the total of the asset register Capital cost column.

Aligning the General Ledger & The Asset register Total of accumulated depreciation in the general ledger has to balance to the Depreciation expensed to date column in the asset register. Net written down value in the general ledger has to balance to the total of the net written down value column in the asset register.

Develop Strategies for managing physical assets Strategies for managing physical assets must reflect the overall enterprise business and marketing objective.

Equipment Data Card Type of Plant or Equipment Its location Its energy source Its age Its condition Its forecast lifespan Warranty period – date of expiry

Equipment History Record Logs inspections Logs repair history If out of warranty Do you repair Or replace Logs maintenance requests

Repairs Regular Maintenance Advantages Disadvantages Keeps equipment operating efficiently Reduces breakdowns Reduces energy consumption Increases life expectancy Disadvantages Equipment has to be shut-down for maintenance A maintenance department must be kept Spare parts have to be in stock

Exercise Students to develop an asset register for a hospitality / tourism venue Students to develop a plant / equipment card See Simmo’s Book Emporium asset register See Accor plant / equipment card