Fixed Asset Compliance & Reporting Solutions
CPCON supports organizations to accurately track fixed assets, ensure regulatory compliance, and optimize asset management processes.
The Overlooked Importance of Fixed Asset Management
Fixed assets require careful attention despite being considered low risk. Proper management ensures accurate financial reporting and regulatory compliance.
Financial Accuracy
Organizations assume their fixed assets are correctly reported—but audits often challenge that assumption.
Audit Scrunity
Given the frequent association of fixed assets with fraud and financial misstatements, heightened internal control testing has resulted in increased scrutiny.
Regulatory Compliance
Proper fixed asset management maintains full compliance with relevant accounting standards and regulations across organizations.
Sarbanes-Oxley Act (SOX)
The historical cost of property, plant, and equipment and the related accumulated depreciation are reported in the financial statements. However, historical audit procedures focused on the current-year acquisition of fixed assets and the corresponding depreciation expense may not be sufficient to ensure accurate reporting.
Compliance with Sarbanes-Oxley Act (SOX) requires robust internal controls over fixed assets, particularly for public companies. Section 404 of SOX mandates that management assess and report on the effectiveness of these controls, making accurate fixed asset tracking essential for regulatory compliance.
International Standards (IFRS)
Under International Financial Reporting Standards (IFRS), organizations must adhere to specific recognition, measurement, and disclosure requirements for fixed assets. IFRS standards like IAS 16 (Property, Plant and Equipment) govern how assets are initially recognized, depreciated over time, and potentially revalued—creating complex compliance challenges for multinational organizations.
FASB Accounting Standards Codification (ASC)
FASB Accounting Standards Codification (ASC) provides a framework for accounting for, measurement, depreciation, and disclosure of fixed assets, with key guidance found in ASC 360, which covers property, plant, and equipment (PPE).
Government Standards (GFRS)
For government entities, Generally Accepted Government Financial Reporting Standards (GFRS) establish specialized requirements for capital asset reporting. These standards emphasize stewardship of public resources and require detailed tracking of government-owned assets, including infrastructure assets that may have significantly longer useful lives than typical business assets.
Our Services
Comprehensive compliance and reporting solutions tailored to your industry needs
Fixed Asset Policy Review
Comprehensive review of your fixed asset policies from acquisition to disposal, ensuring best practices and compliance with regulations.
Physical Asset Inventory and Reconciliation
Thorough inventory of physical assets and reconciliation with financial records to ensure accuracy and completeness.
Fixed Asset Remaining Useful Life Review
Expert assessment of asset lifespans to optimize depreciation schedules and ensure accurate financial reporting.
Fixed Asset Componentization
Strategic breakdown of complex assets into components for more accurate tracking, depreciation, and maintenance planning.
Physical Asset Tagging
Implementation of physical tagging systems to improve tracking, reduce loss, and streamline inventory processes.
Asset Impairment Testing
Rigorous testing to identify and properly account for impaired assets, ensuring financial statement accuracy and compliance.
Tailored Industry Solutions
Healthcare
- Medical equipment tracking and compliance with healthcare regulations
- HIPAA-compliant asset management solutions
- Specialized reporting for healthcare facility accreditation
Financial Services
- SOX compliance for financial institutions
- Basel III capital adequacy reporting
- FDIC and Federal Reserve reporting requirements
Manufacturing
- Production equipment lifecycle management
- ISO compliance for manufacturing assets
- Supply chain asset tracking and reporting
Public Sector
- GASB 34/87 compliance for government entities
- Federal grant asset tracking and reporting
- Public infrastructure asset management
Key Benefits
Financial Benefits
-
Optimized Depreciation
Optimize depreciation schedules and identify opportunities through proper asset classification.
-
Improved Financial Accuracy
Eliminate ghost assets and ensure balance sheet accuracy with proper fixed asset tracking.
-
Enhanced Capital Planning
Make informed decisions about asset replacement and capital expenditures based on accurate data.
Compliance Benefits
-
Regulatory Compliance
Stay compliant with changing regulations across multiple jurisdictions with our expert guidance.
-
Audit-Ready Documentation
Maintain comprehensive documentation that satisfies auditor requirements and reduces audit time.
-
Risk Mitigation
Identify and address compliance risks before they result in penalties or financial restatements.
Industry Insights
Stay informed with the latest trends and regulatory changes in fixed asset management
ASC Accounting Standards Codification
Welcome to the world of ASC Accounting Standards Codification, a comprehensive guide that aims to unravel the complexities of financial reporting and provide a solid foundation for understanding and applying accounting standards.
Read More
What is Asset Tracking? Your definitive guide to maximizing asset utilization
Discover what is asset tracking and learn how to increase efficiency and optimize asset management to improve the performance of your business.
Read More
Fixed Asset Reconciliation: Why can ignoring this process be costly?
Discover the risks of neglecting fixed asset reconciliation: Why can ignoring this process be costly for your business's financial health.
Read MoreReady to Get Started?
Contact our team of experts to learn how we can help with your compliance needs.
