Accounting and Management of Fixed Assets According to Modern Standards

Introduction:

Accounting and asset management are essential tasks for any organization. Assets are the fundamental resources that organizations utilize in production and to generate future profits. In this training course, we will discuss the managerial and accounting methods for these assets based on "International Financial Reporting Standards." This course will encompass all the standards related to accounting, management, and evaluation of assets, particularly within the context of transitioning from a cash basis to an accrual basis, which helps in achieving fair value for these assets. Participants will also be introduced to modern trends in managing, evaluating, and auditing fixed assets in light of risks and other international accounting standards for fixed assets. The course will also cover effective mechanisms for investing in finance lease agreements for fixed assets.

This training course is divided into two sections: "Fixed Asset Management and Accounting." The first section will cover performance management, evaluation, improvement, implementation of management plans, enabling management tools, controls, fixed asset policy, and strategy. Additionally, the managerial section will examine all the lifecycles of fixed assets and include decision-making techniques such as IRR and NPV in capital budgeting. The accounting section will leverage International Financial Reporting Standards, focusing on fair value measurement rules and capitalization rules for tangible and intangible assets. Participants will gain an understanding of various impairment reduction techniques, valuation, and accounting.

Target Audience:

• Fixed Asset Managers
• Supervisors, Accountants, Facility, and Procurement Managers
• Coordinators and Financial Controllers
• New employees responsible for fixed asset management
• Internal Auditors, Maintenance Supervisors, and Operations Managers
• Anyone seeking to enhance their skills and expertise through this course

Course Objectives:

At the end of this innovation strategy course, the participants will be able to:

• Define the concept of fixed assets and modern trends in their management.
• Understand contemporary standards for evaluating fixed assets.
• Acquire financial analysis skills for fixed assets and their impact on the organization, and utilize fixed asset management systems.
• Use the latest methods and means to classify fixed assets.
• Familiarize themselves with financial reporting standards related to fixed asset management.
• Proficiently review and evaluate fixed assets.
• Gain knowledge of asset and fixed asset management systems.
• Learn how to reevaluate assets, the conditions for revaluation, and the accounting treatment of revaluation results as gains and losses.
• Acquire the necessary skills to prepare project and asset budgets.
• Understand how to conduct asset inventories, determine fair values, and present them in financial statements according to international standards.

Targeted Competencies:

• Acquiring assets and calculating their accounts.
• Processing fixed asset-related transactions in accordance with international standards.
• Managing and evaluating assets.
• Preparing investment budgets (asset budgets).
• Presenting assets in final accounts and financial statements in accordance with international standards.

Course Content:
Unit 1: Asset Acquisition and Accounting Operations:

• Major Asset Classifications
• Variables in Making Asset Purchase Decisions
• Asset Purchase and Recording in Books
• Comparing between Buying, Leasing, or Manufacturing an Asset
• Asset Holding via Financial Leasing
• Preparing an Asset Tracking Register
• Assets and Projects Under Implementation

Unit 2: Processing Transactions Related to Fixed Assets According to International Standards:

• Asset Depreciation
• Asset Disposal
• Maintenance and Rehabilitation Operations
• Selling Assets in Whole or in Part
• Replacing an Asset with or without Consideration
• Asset Impairment
• Asset Control
• Asset Transfer between Branches, Cost Centers, or Locations

Unit 3: Asset Management and Evaluation:

• Aspects of Asset Management and Preservation
• Principles and Methods of Asset Valuation
• International Models and Standards for Asset Valuation
• Handling Profit and Loss from Revaluation
• Making Decisions on Depreciation, Replacement, and Disposal of Assets
• Methods of Asset Replacement and Disposal
• Addressing Asset Impairment
• Asset Management and Evaluation According to International Standards

Unit 4: Investment Budget Preparation (Asset Budget):

• Importance and Relationship with Other Budgets
• Funding Sources for the Investment Budget
• Components of the Investment Budget
• New Projects
• Expansion and Completion Projects
• Replacement and Renewal Projects
• Evaluation Models for Investment Projects Listed in the Budget

Unit 5: Presentation of Assets in Financial Statements According to International Standards:

• Linking Assets to General Accounts
• Asset Inventory
• Dealing with Deficits and Surpluses in Asset Accounts
• Cases of Transforming Inventory Items into Assets or Fixed Assets into Inventory Items
• Presentation of Assets at Cost
• Presentation of Assets at Net Value
• Presentation of Assets at Fair Value
• Disclosures Related to Assets in Financial Statements