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

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

3. 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

4. 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

5. 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

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

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

8. 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:

9. 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

10. 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.

11. 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.

12. 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.

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

14. 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

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

16. 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

17. 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