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Asset Management Plan Preparation

Asset Management Plan Preparation

Asset Management Plan Preparation


  • 1. To use asset for maximum benefit and investment worthiness.
  • 2. To recognize by work unit in the organization and work unit in the company on necessity for use of existing assets and expense occurred from use of assets in each year that will be information applied for decision making support in planning disbursement of operating budget and investment budget in that year.
  • 3. To prepare asset management plan (durable goods and constructions) in analysis that it is appropriate for expense occurrence, resulting in occurrence of additional expense in use of operating budget or investment budget.
  • 4. The work unit is requested for submission of that asset management plan to support the consideration on the approval of money spending plan or financial support request of that work unit.

Internal Control of Fixed Asset
  • 1.Budget for investment expense is prepared under requirement for approval from the Board or the business owner. The approved budget shall be informed to below divisions for acknowledgement.
    • 1.1 Purchasing Division or Purchasing Officer
    • 1.2 Engineering Division
    • 1.3 Accounting Division
  • 2. Each time of fixed asset purchase shall consider on the following.
    • 2.1 It is necessary spending
    • 2.2 The price requested for approval is too high or low.
    • 2.3 The asset purchased for replacement is useful and worthy for investment.
    • 2.4 Useful life is properly estimated.
  • 3. Asset Register or Subsidiary Account shall be declared the following.
    • 3.1 No. and storage place for each piece of article
    • 3.2 Useful life and depreciation rate
    • 3.3 Cost price, accumulated depreciation, annual depreciation, and carried forward accumulated depreciation.
    • 3.4 Total amount of each transaction shall be equal to control account.
  • 4. The following shall be checked in case that register or subsidiary account is available.
    • 4.1 Asset is marked with Registration No.;
    • 4.2 Count is performed whether asset is existent according to Register;
    • 4.3 If incomplete counting, check is immediately performed.
  • 5. Depreciation calculation policy is certainly formulated.
  • 6. Depreciation is accurately classified as the expense of the Division (Cost Center) that uses the asset.
  • 7. After estimation of all depreciations, price at 1 Baht is remained in the account for good internal control.
  • 8. Purchase and use requisition of miscellaneous tools shall be controlled.
  • 9. High priced asset is insured and the insured amount is worthy of purchase price for replacement when damage occurs.
  • 10. Accounting writing-off or location movement shall be approved.
  • 11. Sale shall be performed like product.
  • 12. Expense policy for fixed asset and maintenance and repair expense is explicitly formulated.