Enterprise Asset Management – IFRS
Compliance means: Being in a state of keeping to established guidelines or legislation (or working towards being in that state). In recent years, finance professionals and managers have had to cope with an awful lot of new guidelines and legislation. IFRS stands for International Financial Reporting Standards. The move to international accounting standards is being driven by globalisation and the breaking down of national barriers.
IFRS currently applies to companies listed on EU stock exchanges. But it won’t stop there! The International Accounting Standards Board (IASB) has published a draft document on IFRS for small and medium enterprises. It is clear that IFRS will be the standard for all companies within the next few years.
IFRS and asset management
Just some of the IFRS requirements for asset management:
- more analysis of fixed assets
- a different means of depreciation for finance leases and restatement for property
- open and customisable depreciation methods
- apply depreciation, revaluation and / or impairment to categories, subcategories or components of assets
- manage different valuations and processing for a given asset in parallel
- provide complete audit trail
Can your current asset management software handle all this? If not, you need to contact us.
The Sarbanes-Oxley Act of 2002 was signed into law in the USA. The aim of the legislation is to ensure that business processes are reliable and that key managers are accountable. Sarbanes-Oxley (abbreviated to Sarbox) affects many larger companies, particularly those with US connections.
The key issue in Sarbox is accountability. Senior executives are required to sign personal undertakings that their accounts present an accurate view.