Modern Standards for Accounting and Management of Fixed Assets

Introduction:

Accounting and asset management are key functions in any business, as they involve the management of resources expected to be used in production and later create wealth. This course explores how fixed assets are defined, managed, and reported using accounting rules that comply with International Financial Reporting Standards (IFRS). It also covers effective methods of investing in fixed assets, such as finance leases.

Learners will gain an understanding of managing, evaluating, and auditing fixed assets, with an emphasis on risk control and compliance with international accounting standards. The course is divided into two key areas: Fixed Asset Management and Fixed Asset Accounting.

Objectives:

By the end of this course, participants will be able to:

• Define the Concept of Fixed Assets and Modern Trends in Their Management:
  Understand the concept of fixed assets and the trends involved in their management.
• Comprehend Requirements Pertaining to Fixed Asset Evaluation:
  Grasp contemporaneous practices for accurate valuation of fixed assets in compliance with policies.
• Acquire Financial Analysis Skills for Fixed Assets:
  Develop skills to assess the financial impact of fixed assets and effectively use fixed asset management systems.
• Use Up-to-Date Approaches in Classification of Fixed Assets:
  Implement relevant plans for the classification and organization of fixed assets.
• Understand Financial Reporting Standards Applicable to Fixed Asset Management:
  Familiarize with the financial reports and standards governing fixed asset management.
• Appraise and Inspect Fixed Assets Satisfactorily:
  Learn how to perform adequate assessment and appraisal of fixed assets.
• Broaden Knowledge on Systems of Asset and Fixed Asset Management:
  Expand understanding of both general asset management and fixed asset management systems.
• Learn How to Reevaluate Assets:
  Understand when and how to re-evaluate assets and recognize the effects of asset revaluation on profit or loss.
• Acquire Skills to Prepare Project and Asset Budgets:
  Develop the capacity to prepare well-coordinated project and asset budgets.
• Assess Asset Management Frameworks:
  Gain familiarity with asset inventories, fair value evaluation, and financial presentation according to international standards.

Training Methodology:

• Interactive Lectures
• Case Studies
• Group Discussions
• Hands-on Workshops
• Real-life Scenarios

Course Outline:

Unit 1: Asset Acquisition and Accounting Operations

• Key Asset Classifications
• Asset Purchase Decision-Making Variables
• Asset Purchase and Entry in the Books
• Comparison of Buying, Leasing, or Manufacturing an Asset
• Financial Leasing of Asset Holding
• Setting up an Asset Tracking Register
• Assets and Projects Under Implementation

Unit 2: Processing Transactions Related to Fixed Assets according to Russian Valuation Standards

• Depreciation Policy of the Asset
• Disposal Policy of Asset
• Maintenance and Rehabilitation Works
• Disposal of Assets in Whole or in Parts
• Disposal of Assets – Replacement of Asset with/without Consideration
• Impairment of Assets
• Control of Assets
• Transfer of Assets between Branches, Cost Centers, or Locations

Unit 3: Asset Management and Evaluation

• Asset Management or Preservation Perspective
• Valuation Principles and Methods for Assets
• Asset Valuation Services or International Models/Standards Applicable to Asset Valuation
• Profit and Loss from Revaluation
• Decisions on Depreciation, Replacement, and Disposal of Assets
• Measures for Replacement and Disposal of Assets
• Treatment of Asset Impairment
• Management and Evaluation of Assets in Compliance with International Standards

Unit 4: Investment Budget Construction (Asset Budget)

• Significance and Correlation with Other Budgets
• Sources of Finance for the Investment Budget
• Elements of the Investment Budget
• New Projects
• Projects for Expansion and Fulfillment
• Projects for Replacement and Modernization
• Valuation Models for Investment Projects Included in the Budget

Unit 5: Representation of Different Assets in Relation to Financial Statements based on International Standards

• Connecting Assets with the Level of General Accounts
• Asset Turnover
• Management of Deficits and Surpluses in the Asset Account
• Conversion of Inventory Items to Assets or Fixed Assets into Inventory Items
• Disclosure of Assets at Cost
• Disclosure of Assets at Net Book Value
• Disclosure of Assets at Fair Market Value
• Assets-Related Disclosures in Financial Statements