{"id":5157,"date":"2014-11-19T07:33:01","date_gmt":"2014-11-19T05:33:01","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=5157"},"modified":"2014-11-15T17:33:53","modified_gmt":"2014-11-15T15:33:53","slug":"ensure-that-the-assets-recognized-are-in-fact-in-use-and-assess-their-condition","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/ensure-that-the-assets-recognized-are-in-fact-in-use-and-assess-their-condition\/","title":{"rendered":"Ensure that the assets recognized are in fact in use and assess their condition"},"content":{"rendered":"<p>Your company may own many or very few assets. Regardless, it\u2019s important to know their condition, their operating capabilities and their actual usage. When you\u2019ve ensured that the assets do exist, you have made the first essential step. The next step would be to assess their usefulness for the business and its operations. \u00a0<!--more--><\/p>\n<p>The ways to do that are as follows:<\/p>\n<ol>\n<li>Mapping the processes you use a specific asset and gaining an understanding of whether these operations are still relevant for the business (i.e. there may be a production line or equipment for something your company does not produce any longer);<\/li>\n<li>Once you\u2019ve eliminated assets in the previous step, it\u2019s now time to evaluate whether the remaining assets are in use. You may be producing the items an asset is used for, but are you really using this asset? It is possible you\u2019ve got it already replaced but the asset is still within your books and existing;<\/li>\n<li>Now that you\u2019ve eliminated assets meant for specific process no longer relevant and assets that aren\u2019t used for still relevant processes, there\u2019s one last thing to do. It\u2019s about measuring the condition of assets in fact being used. Measuring the condition or assessing it is important for obvious reasons \u2013 understanding whether any repair needs to be carried out (understanding the requirement for additional funds, outage of production etc.) and measuring for any needed changes in the assets useful life. For an example if within the books we say we\u2019ll use the asset for say 3 years, but when inspecting the condition of the asset (perhaps also specified worked hours etc.), it may be so that there\u2019s just one year left. As such, the depreciation of the asset should be much faster. Or vice a versa, when we assess that we are going to use the asset for 5 years resulting in decreased depreciation expense.<\/li>\n<\/ol>\n<p>So it\u2019s not just understanding whether the assets are still there, but also understanding whether they\u2019re still good and necessary for the business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Your company may own many or very few assets. Regardless, it\u2019s important to know their condition, their operating capabilities and their actual usage. When you\u2019ve ensured that the assets do exist, you have made the first essential step. The next step would be to assess their usefulness for the business and its operations. \u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[75],"tags":[],"class_list":["post-5157","post","type-post","status-publish","format-standard","hentry","category-3-4-regular-control-procedures"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5157"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5157\/revisions"}],"predecessor-version":[{"id":5158,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5157\/revisions\/5158"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5157"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}