An Opportunity for Asset Utilization - Part One

Good Housekeeping
As the US follows the global trend into recession, organizations across the country are imposing far tighter financial controls - and capital expenditure is being reduced to the bare minimum. Coming so close on the heels of the significant expenditure and resource required to manage the transition from US GAAP to IFRS, it is temping for the finance department to batten down the hatches and dig in for the long haul.

However, over the past decade of boom, organizations have invested heavily in new fixed assets and equipment. Manufacturing lines have been replaced, state of the art IT kit deployed and property portfolios extended. Yet very few organizations have any real idea of where much of this fixed asset base resides, whether it is being effectively utilized or whether it has been disposed of, despite still being depreciated on the balance sheet.

What happened to the fixed assets that were replaced by the shiny, new equipment? Are they being used across the business - or simply left unused in a cupboard or warehouse? With no budget forthcoming for new purchases, now is the time to get an accurate handle on corporate assets to ensure maximum utilization and value.

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