Asset Registers

What is asset management?

The purpose of asset management is to improve the financial and physical management of all assets, by streamlining them to the owner’s corporate strategies and ultimately service delivery objectives.

Who needs asset management?

Every organisation requires a strategic and tactical plan for managing their assets to deliver an agreed standard of service. The main benefit derived from asset management is that it reduces the inherent risks in asset ownership, by providing dynamic data for decision making. Asset management benefits can be summed up as below:

  • It establishes a condition audit for the asset strategic plan
  • It allows accurate distribution of maintenance costs between different divisions / departments and cost centres
  • It establishes an effective framework and consistent approach for future asset management for example, acquisition plans, maintenance plans, disposal plans

What is an asset register?

An asset registeris a listing of information relating to various aspects of an asset portfolio, in a form or schedule list that allows data to be cross-referenced and retrieved as required.

Why should I want an asset register?

An asset register is a list of assets. It is the level of detail that is crucial in determining how useful an asset register is in managing the assets. A property fund manager may see a building as an asset. A quantity surveyor may see more than a thousand assets in that same building. Traditionally, asset registers were delivered in hard copy and were out-of-date the moment they landed on a property manager’s desk. Technology now enables the electronic transfer of data to the property manager’s desktop, where it can be imported into their management software, enabling easy updating of information that will reduces the inherent risks in asset ownership, by providing dynamic data for decision making.

What type or how can I get an asset register?

Many organisations have no fixed asset management system in place or if you are unhappy with their current asset management processes and procedures then all you need to do is call Quantum QS who are regarded as specialist in asset registers to provide advice and to determine what type of asset register may most be effective to your organisation based on its merits.

Why pay for an asset register when I can draw up a list myself?

This is an important process where accurate records are complied, with values established at the time of the report preparation. A Quantum QS asset register will highlight accurately what is owned and the current value of each individualised item. Quantum QS is an independent firm of registered quantity surveying that will ensure that accurate records are kept whilst compiling the asset register in an unbiased manner.

What items are to be included in a Quantum QS asset register?

Basically, all items other than stock in trade will be included in our report. Contents are accounted based on location which is the split on a room by room basis.

Can values from a standard asset register be used in a depreciation schedule?

The commencing value for the purposes of tax depreciation should generally be the original cost of the item known as the historic cost. Whereas the value of each asset in the asset register is the value of that asset at the time the inspection took place.

Can asset register values be used for the purposes of insurance replacement?

In good practice they should not be, as the values used in an asset register are the values at the time of preparing the asset register and may lead to under insurance as the replacement value of these items would generally be considerably higher. It is, however, cost effective to have a contents replacement insurance valuation prepared at the same time as you commission an asset register.