How Asset Management can make a difference

How Asset Management can make a difference

Roger Scott and Massimo Gozzo discuss the importance of maintaining and managing a linked and reliable record of your company's physical assets.

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Asset Management round table

KPMG’s experience indicates that companies regularly face difficulties in maintaining a linked and reliable physical and financial record of all their physical assets.

Achieving asset management is complicated by the variety of different teams managing asset information (eg. Finance, Operations and Engineering) each of whom play a significant role in keeping asset information current. Companies also face additional challenges as asset bases grow and company structures transform through acquisition.

A lack of quality asset data (if not addressed) can impact a company in a variety of ways:

  • A lack of transparency and visibility of assets and hierarchies may reduce the ability of a company to effectively allocate costs, report and manage its assets
  • The lack of transparency and lack of asset data integrity can complicate tax compliance and impact on the ability of firms to optimise tax depreciation
  • Long term planning and (maintenance/ capital expenditure) decision making may be impeded, as the transparency of the individual assets, including value and determination of remaining useful life, remains inaccurate.
  • In the worst cases, a lack of transparency and effective management of physical asset and associated financial data could trigger formal enquiries from auditors and tax authorities and financial penalties.

The importance of good asset management

Proficient management of physical asset data and financial information is an essential element in accurate risk mitigation and oversight of investments. Effective management of asset information is an essential success factor to enable holistic asset reporting and control.

How KPMG can help

KPMG has a multi-disciplinary team approach to help clients to develop specific improvement plans to address the root causes of the issues presented above. The KPMG team’s expertise includes tax, asset management, valuations, asset data analytics and information management and financial (process) management expertise to solve the range of challenges across the asset lifecycle that clients face.

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