ASCOTT雅诗阁酒店公寓品牌财务部门政策与程序APP G01 (Fixed Asset)

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1、TAG Policy & ProceduresDepartment: FinanceSection:APP G01Topic: Fixed AssetsDate Created:Apr 2001Revised:Feb 2007 (Ver 2)Page:Page 8 of 8G01FIXED ASSETS1.OBJECTIVE1.1 To set guidelines for the control and safeguard of fixed assets.1.2 To establish the uniform accounting for fixed assets including th

2、e capitalisation, depreciation and disposal policies.2. POLICIES2.1 A fixed assets register is to be maintained and updated monthly to record all new additions and movements (e.g. Transfers, Disposals, Write-offs etc) for easy reference and control.2.2 Fixed Assets are stated at cost less accumulate

3、d depreciation.2.3 Depreciation is calculated on the straight-line method to write off the cost of the assets over their useful lives.2.4 Fixed Assets should be eliminated from the financial statements upon disposal or writeoff.2.5 Fully depreciated but still in use assets should reflect a nominal n

4、et book value of $1.2.6 The responsibility for custody and physical condition of fixed assets rest on the user department head.2.7 Full physical count for all fixed assets must be conducted annually, except assets in Service Apartment, which are counted before guest checks in and checks out of the a

5、partment.2.8 All fixed assets must be adequately insured.2.9 For depreciation, where asset useful lives based on local statutory accounting guidelines differ from TAGs prescribed asset useful lives, the former shall be applied. However adjustment will be required for compliance with TAG reporting re

6、quirements. 3. DEFINITIONS3.1 Fixed Assets refers to those items described in IAS 16 - Property, Plant and Equipment i.e.:(a) Tangible items;(b) Held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and(c) Expected to be used for more th

7、an one financial period.3.2 Historical Cost refers to the gross carrying amount of fixed assets which comprises the purchase price of the asset and any direct attributable cost of bringing the asset to working condition for its intended use. Direct attributable cost refers to general and administrat

8、ive costs and/or start-up and related pre-production costs that can specifically be related to the acquisition of the fixed assets.3.3 Improvement and Repairs are usually classified as operating expense unless it can be clearly established that these expenditures increase the future benefits from th

9、e existing asset beyond previous assessments e.g. increase useful life or capacity.4. CAPITALISATION GUIDELINES4.1 Fixed Assets are to be capitalised in the month of purchase upon receipt of assets.4.2 Capital projects / assets that costs more than S$1,000 and having economic life span of greater th

10、an 1 year shall be capitalized. Where there is a local statutory policy to be adhered for compliance of local tax rules and accounting system, the locally prescribed capitalization guidelines shall prevail. Do note that accounting adjustments are required for monthly/yearly management reporting if T

11、AG accounting requirements differ from local statutory accounting requirements. 4.3 Major spare parts and stand-by equipment exceeding 20% of the value of the fixed assets may be capitalised at the managements discretion. All other spare parts and servicing equipment should be carried as inventory a

12、nd expensed as it is consumed.4.4 Crockeries, cutleries, kitchenware and linen are capitalised at the minimum level requirement (i.e. on par stock basis) as for normal operation. All subsequent replacement will be expensed to Profit & Loss Account.5. CAPITAL REQUISITION5.1Capital Requisition form to

13、 be used for all FA acquisitions. 5.2All fixed asset purchases must be approved in accordance with Delegation of Authority (“DOA”) limits. 6.FIXED ASSETS RECORD AND CONTROL6.1 Categories of Fixed AssetsThere are three (3) main categories of fixed assets employed:6.1.1 Immobile Or Large Sized Assets

14、Immobile or relatively large in size where initial recording and periodic inspection is adequate for control purposes e.g. Land, Building, Carpeting, Wallpapers, Motor vehicles, etc No tagging of assets is required. Assets need not be counted in the annual physical count exercise.6.1.2 Serviced Apar

15、tment Assets Assets placed in the Serviced Apartment. e.g. Sofas, Beds, Crockery, Utensils etc No tagging of assets is required. Assets need not be counted in the annual physical count exercise. However assets should be recorded in the room inventory list and counted before guest checks in or after

16、guest checks out of the room.6.1.3 Administrative Assets Moveable or relatively small in size, where both physical control and recording are necessary for control purposes. e.g. Office Equipment, Computer etc Tagging of assets is required. Assets have to be counted in the annual physical count exerc

17、ise.6.2 Classification6.2.1 Fixed asset classification will be based on the existing categories stated in TAG Chart of Accounts (Annex A). 6.3Fixed Assets Register6.3.1 A Fixed Assets Register must be maintained at each property to record the following: Date of purchase Brief description of fixed as

18、set Name of supplier Location of fixed asset Serial number of assets Assets code Asset Useful Life Invoice Number Number of units Total Cost Depreciation Charge (Monthly) Net Book Value Comments (If any) 6.3.2 The register must be updated once a month to reflect the months movement and the depreciat

19、ion charge as per General Ledgers control account.6.4 Fixed Assets Coding and Tagging6.4.1 To refer to paragraph 6.1 for requirements on tagging of fixed assets.6.4.2 The coding system (refer to Appendix G7) consists the minimum classification as follows: Chart of Accounts Extract (2 digit) (Refer t

20、o Table G8) Month of purchase (1 digit)(N,Nov; D,Dec) Year of purchase (2 digit) User department (3 digit) (Refer to Table G9) Asset Number (7 digit) (For Oracle, system generated.)6.5 User Departments Responsibility6.5.1 User departments head is held responsible for the safeguarding and maintenance

21、 of the fixed assets employed by his department. 6.5.2 When user department notes any damage to fixed assets, the head shall contact the in-house maintenance team for repair or recommendation for external repair. 6.5.3 If the fixed asset is irreparable or the cost of repair would be too high, the de

22、partment head may request for a replacement under the capital expenditure procedure. For such replacement, the department head shall indicate specifically the asset being replaced in the Capital Requisition.6.6 Movement in Fixed Assets6.6.1 For any physical movement of fixed assets from one departme

23、nt to another, the Accounts department must be notified by an internal Asset Transfer Form (Appendix G1) for record update. 6.6.2 However this does not apply to fixed assets in guest residences whereby the movement is between guest residences only. Such movement shall be tracked separately in the ho

24、usekeeping records by the Housekeeping department.6.6.3 Fixed assets leaving the property for external maintenance must be monitored and accounted for via proper recording system.6.7 Physical Count6.7.1Physical Count of Fixed Assets should be conducted at least once a year.6.7.2Refer to paragraph 6.

25、1 for assets to be counted.6.7.3Physical count Procedures:(a) Before counting, a detailed list of fixed assets according to the fixed assets register will be prepared.(b) The counting team consists of 1 staff from user department and 1 staff from Finance department. For the count at Finance departme

26、nt, the team will consist of 2 staff from Finance department.(c) During the count, the condition of the fixed assets must be informed and noted. Conditions for consideration: whether items are still in use or in working condition whether items are sufficiently safeguarded against physical damage whe

27、ther items remaining economic useful lives still valid(d) After the count, reconciliation between the physical count results and records shall be prepared within 2 weeks of the physical count. Any discrepancy found must be investigated and explained, a report must be submitted to the Finance Control

28、ler and Property Manager for further decision on the appropriate action.(e) No adjustment shall be made to the records when a physical discrepancy is discovered unless written approval is obtained (in accordance with Delegation of Authority).(f) At the completion of the physical count process, an up

29、dated list shall be sent to user departments for subsequent control and accountability.6.8 Disposal of Fixed Assets6.8.1 Disposal determination factors:(a) Technical obsolescence or wear and tear which renders the fixed assets impractical or uneconomical for use;(b) Termination or cancellation of a

30、project which results in the fixed assets not required; (c) Repairs and maintenance costs becoming excessive.6.8.2 The disposal must be approved in accordance with the Authority Limits set in the DOA. 6.8.3 Upon disposal, (a) Proceeds are to be banked in promptly; (b) Gain/loss are to be accounted i

31、n the Profit & Loss Statement; and(c) Fixed Asset Register is to be immediately updated.6.9Disposal Procedures 6.9.1The fixed assets identified for disposal will be listed in the Asset Disposal Form (Appendix G2) by the user department head and subsequent approval in accordance with the DOA. Net Boo

32、k Value (NBV) of the asset will be used as the basis for disposal approval.6.9.2If inter-company/property asset transfer is deemed more appropriate instead of disposal, the transfer should be done using the Asset Transfer Form (Appendix G1).6.9.3Disposal may be accomplished by:i. Sale to third party

33、: To sell to highest bidder (minimum of 3 bids). Where only 1 bid is obtained, sale to be approved based on DOA.ii. Scrap: To sell to highest bidder (minimum of 3 bids). Where only 1 bid is obtained, sale to be approved based on DOA.iii. Offerings to employees: To sell to highest bid by employee. Bi

34、ds submitted must be sealed and received by a specified date and time.iv. Donation: To consider if there is tax or public relations advantage. 6.9.4Upon completion of asset disposal, the completed Asset Disposal Form, together with the supporting documents (e.g. bids submitted or memo approving the

35、donation) shall be routed to the Accounts Department for Fixed Assets Register update.6.10Write-off of Fixed Assets6.10.1All fixed assets that are damaged and unusable must be written off in the financial records and physically disposed. Before submitting for write off, the item must be verified as

36、damaged/ not usable by the Engineering Department.6.10.2The write-off must be supported by an Engineers report, authorized by the Property Manager and Finance Manager and approved by the appropriate authority in accordance to the DOA, using the Asset Disposal Form.6.11Fixed Assets in Guest Residence

37、s6.11.1Fixed assets located in guest residences are not required to be tagged or identified the specific location of each unit due to impractical reason.6.11.2Each Residence will have a Room Fixed Asset List (Appendix G3) to keep track of all fixed assets in the Residence.6.11.3Each Floor will have

38、a Floor Fixed Asset (Appendix G4) List to keep track of all fixed assets at each floor (i.e. Sum Total of Serviced Residence Assets plus Assets in Store to agree to floor inventory list).6.11.4All the Serviced Residence Assets will be recorded and managed in the Serviced Residence FA Register (i.e.

39、Sum Total of Floor Inventory Lists for all Floors to agree to Serviced Residence FA Register) (Appendix G5).6.11.5The totals of the Serviced Residence Assets are recorded by the Asset Type and each line item is recorded in the Accounting System as a single entry. (E.g. There are 170 televisions at t

40、he property, 1 in each room. In the accounting System, the 170 televisions can be recorded as 1 line item as 170 Televisions).6.11.6Housekeeping Department Head will be the custodian for all Serviced Residence Assets and the Serviced Residence FA Register.6.11.7Housekeeping will count assets before

41、guest checkout. Where Serviced Residence Assets are damaged by guest, they will be charged to the guest, and offset against the guests security deposits where applicable.6.11.8Examples of Service Apartment Assets: Crockery, Cutleries, Linen, Room Furniture.6.12Operating Equipment as Fixed Assets6.12

42、.1 All initial purchases of crockeries, kitchenware and linen up to the par stock basis, shall be considered as fixed assets.6.12.2 Any item kept in the general or housekeeping store not being distributed to respective department shall be accounted as stock using stock card system where number of un

43、it is recorded for control purposes.6.12.3 Any subsequent purchases of such category of asset shall be expensed to the respective departments Profit & Loss.6.12.4 Annual physical count must be done to determine the physical balances in hand.6.13 Renovation Done to Guest Residences6.13.1 For any floo

44、r renovation, the identifiable cost for the old decorations, furniture and fixtures that are disposed should be written off and the new renovation cost capitalised.6.14Depreciation6.14.1 Depreciation should commence in the month when the fixed asset is first deployed/used. e.g. If asset is deployed/

45、used on 31 January; depreciation will commence in January.6.14.2 Depreciation should be calculated on a straight-line basis to write-off the cost or valuation of fixed assets over their estimated economical useful life spans.6.14.3 The estimated useful life spans for all fixed assets shall follow th

46、e corporate policies as set out in Appendix G10. In situations where local statutory depreciation guidelines differ from TAG corporate useful lives, local guidelines prevail for local statutory compliance. However, for group financial reporting, the depreciation must be adjusted to Groups policies.6

47、.14.4 For leased assets (on finance leases only), the shorter of useful economic life or leasehold period should be used. In situations where the asset lease is extended, the assets NBV at the time of lease extension will be applied across the shorter of the new lease period or remaining useful life

48、.6.14.5 For fixed assets used specifically on certain projects, the shorter of project duration or useful economical life shall be applied.6.14.6 When major plant and machinery, although installed, may require a period of commissioning and testing before certified fit for use; the depreciation may b

49、e deferred until the commissioning is completed and the assets are in working condition. In normal condition, the deferral should not stretch beyond 6 months. Otherwise, specific approval from HQ-Finance is required.6.14.7 No depreciation should be charged for assets disposed in the month of disposa

50、l.6.14.8 Property Ownership Structure Considerations: If the property is owned entirely by TAG, no deviations from the above. If the property is owned by a TAG subsidiary, no deviations from the above. If the property is owned by a TAG associate, depreciation will be based on the Majority Owners dec

51、ision, though depreciation should be in compliance with local statutory guidelines. If the property is not owned by a TAG entity but only managed by a TAG entity, depreciation guidelines will be based on the Owners discretion. Local statutory accounting regulations shall prevail in cases where there

52、 are conflicts but must be adjusted to TAGs policies for monthly reporting to HQ.7. STANDARD FORMS7.1 Asset Transfer Form(Appendix G1)7.2 Asset Disposal Form(Appendix G2)7.3 Room Fixed Asset List(Appendix G3)7.4 Floor Fixed Asset List(Appendix G4)7.5 Service Residence Fixed Asset Register(Appendix G5)COMPANY CONFIDENTIAL 2004. Ascott International Management (2001) Pte Ltd. All Rights Reserved. No part of this document may be resold, reproduced or transmitted in any form by any means without the written consent of the publisher.