Asset Management and Accounting Practices

This assignment delves into the realm of asset management, focusing on information systems used to track and manage assets effectively. It examines concepts like asset pricing with financial frictions and explores how these systems contribute to accounting and finance practices. The text also touches upon the application of asset registers in various contexts, including human asset management within physical asset management frameworks.

Asset Register

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT-1.............................................................................................................................1
PART -A- ASSET REGISTER.......................................................................................................1
PART B............................................................................................................................................2
1. Develop maintenance register.................................................................................................2
2. Maintenance plan....................................................................................................................3
3. Replacement products detail...................................................................................................5
4. details and budget for each replaced product..........................................................................6
5. 3 prices and quotes from different suppliers...........................................................................6
6. Different Financing options....................................................................................................7
7. different finance variants.........................................................................................................7
8. Explain the official process that needs to be followed............................................................8
ASSESSMENT 2.............................................................................................................................1
1. How business aims influence methods used for managing physical assets in the
organisation.................................................................................................................................1
2. Different types of physical assets used in hospitality industry...............................................1
3. 5 Physical assets for training the maintain ace details typically required...............................2
4. 6 Aspects that considered for the long term assessment of physical assets............................2
5.Different types of parameters for acquisition of physical assets..............................................3
6. What are the features and benefits of renting equipments......................................................3
7. What are the features and benefits of using Hire purchases to acquire expensive equipments
.....................................................................................................................................................3
8. Features and benefits of leasing equipment and furniture......................................................4
9. Benefits of purchasing physical assets outright......................................................................4
10. Purpose and components of physical assets register.............................................................4
11. Assessing about depreciation to a piece of equipments........................................................5
12. Two methods of calculating depreciation.............................................................................5
13. 4 examples of sources for data to estimate reliable acquisition cost and need to consider in
terms of contractual obligations and ongoing maintenance........................................................6

14. 3 examples for environmental sustainability that applies to physical assets and outline
environmental and financial benefits..........................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7
Online..........................................................................................................................................8

INTRODUCTION
Assets in hospitality have their won importance. The entire report is based upon the
maintenance of asset in hospitality industry. The report is deals with Acumen Kitchen and
restaurant under which whole assets register is maintained. The present report is based upon two
assessment. In Assessment-1 report presents the asset register and how they are maintained in
future. Further report also presents why it is necessary to monitor entire asset register regularly
and what WHS issues which company faces. In Assessment-2 the report presents the basic
information about asset such as Codes of Practices, Industry Accreditation schemes, some
physical assets etc.
ASSESSMENT-1
PART -A- ASSET REGISTER
Physical Asset Register for Acumen kitchen and restaurant
Asset Building, computer system, furnitures that includes table and chair, equipment fixture
and fittings, R.O.
Asset
description
Serial
number
Cost Purchase
Date
Deprecia
tion
Closing
Written
Down value
Computer
system:
Model No. -
HP15-
AY078TX
1 $300 13/10/17 $30 $330
Furniture: single, double
and multiple 42
seat chair, 6
Round table of
wood, wooden
kitchen cabinet.
2 $578 18.09.2017 $58 $636
1

Equipment
fixture:
R.O.- Steel
Model no-
11107
5 Sink: Cera-
Model No.
SEC- 142
CCTV
system:Model
Number- 4852
Curtains: Soft
Material
Television:
Model no-
9.75,'' Q9
QLED4 K
3
3
3
3
5
$1080
$120
$200
$ 20
$300
19/09/16
19/09/2016
$19.09.201
7
19/09/2016
20/10/2017
$108
$24
$20
$4
$1108
$144
$220
$24
$330
Building: Fixed Asset 4 $1000 20/10/15 - -
PART B
1. Develop maintenance register.
Assets Maintenance
description
Lease or contract
agreement
Performed by Remark
Furniture Table and chair
required proper
finishing. Doors
Lease Car-painter
provided by
owner
Regular
monitoring, and
oiling of doors.
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fixing is
necessary.
R.O. Cleaning of filter
in it.
Contract
agreement
Person from
water purifier
company
Regular check
water.
Computer system Installing up to
date system with
time.
Contract
agreement
Contractor Up to date
Air conditioner Cleaning is fences Lease Repair contractor Regular review
will be done
2. Maintenance plan.
a. Reporting and monitoring mechanisms.
Monitoring machinery is done to ensure the effective implementation of the Rules.
Supervising mechanism should find barriers & suggest measures that would help to contribute in
effective application of rules. Further it helps in determining how assets are working and when
changes are needed. Further, if any fault is identified in them then it is being reported to the
senior manager regarding it. Then he appoints a mechanical engineer for repairing it. In a
restaurant assets such as furniture, equipments, R.O., computer system, etc. all are required to be
working effectively as all of them are necessary for smooth working of a restaurant. Therefore,
having proper working equipments leads to smooth working of a kitchen (Benedetti, Fontignie
and Pichetti, 2016).
b. Provisions for collecting and recording feedback from customers.
Customers feedbacks are necessary to make improvements in a restaurant, to know what
they think about services and to enhance quality services for the future. Feedbacks can be
collected:
 Mobile :- this is considered most exciting way of collecting their feedback. Customers are
asked through messages to provide their thought and views regarding food, services, etc.
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If any negative feedback is arrived, then restaurant should assure them for more better
service in the future.
 Feedback forms :- they can also gather feedback through forms at their own website. It
has been determined that having a feedback box on restaurant website is considered
convenient for customers to have a direct way to interact the restaurant (Baumeister,
Vogel and Petitjean, 2014).
List Maintena
nce
required
Expected
duration
Time of
maintena
nce
Disrupti
ons for
operatio
ns
WHS
issues
Rules &
regulatio
ns for
electricit
y and
gas.
Labour
cost
Cost of
parts.
Compute
r system
Formatti
ng &
installati
on.
In every
2 months
Morning Overall
informa
tion
might
be
erased
Never
put
fingers in
an outlet.
$1,476 $300
Furniture Doors
fixing
Every 5
months
Closing Cause
problem
to guest.
May harm
staff or
visitors
Don't
touch
under
maintena
nce
things
$2,500 $700
Kitchen
Equipme
nts
Cleaning
R.O.
Every 15
days
Before,
opening
restauran
t
Problem
in
making
food.
Unclean
water can
be
harmful
Keep
metal
objects
out of
toaster
$1,500 $300
4

Building Electrical
, fixtures,
CCTV,
etc.
maintena
nce
Every 3
months
Closing
time
Diruptio
n to
staff
during
work
Repairing
electricity
and
CCTV is
necessary
for
restaurant
safety.
Stay
away
from
power
lines
$5,000 $1000
L. Provisions for monitoring of financial performance of the assets.
 Accountability and safe custody of assets :- most important function of fixed asset
management is safe detention of those assets. Maintaining hight standard of data integrity
is considered as a good risk management measures.
 Fixed assets tracking :- to keep assets safe and productive, fixed asset tracking process
should be done. Keeping track to their location, insurance, etc. will help to keep safety,
and efficiency (Nothwehr, Haines and Schultz, 2014).
M. Review or audit of the performance.
Regular monitoring of assets, its usage, installation capacity, functionality, etc. will help
to know assets viability to work successfully. This will allow management with appropriate
assessment of fixed assets. Assets which exist physically but are not recorded, can also be
tracked and brought into books through retrospective impact.
3. Replacement products detail
For Computer restaurant: The Acumen kitchen, a computer needs to be replaced
because of many errors. Such as in Excel he data are not calculated properly while on the other
side, the system needs to be upgrade as Microsoft 10.The data of a computer has weak RAM
which helps to save entire data. But now RAM also degrade. Moreover, the entire system of
Computer fails to meet out all the needs. Therefore, it is quite necessary to replaced it or
purchase new one (Kogan and Papanikolaou, 2018) .
Chest Freezer: The deep chest freezer needs to be replaced because the thermostat could
failing so fast that the things which put in a freezer are not cool down properly. Another issued is
the freezer's condenser coils are so dirty and as a result they did not keep food fresh and even
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provide dirty air which smells. The evaporator fan motor of a freezer is also dirty and failing and
needs to clean by the the manufacturer. The condenser fan which regulates the temperature of a
entire system needs to be replaced because the affect the entire system of a freezer.
A coffee Machine: The coffee machine is also needs to be replaced because the coffee is
leaking from brewing group head and filter holder. Even the water is also leakage from it which
does not allow machine for proper work. Another basic problem. From the coffee is to leakage
found from the front of the machine under drip tray and this can be caused due to waste pipe/
box gets blocked. Therefore, it is also necessary to get it replaced as soon as possible.
4. details and budget for each replaced product
To replaced each three products it requires proper description which is mentioned below:
Capacity: For each new product the capacity may varies such as
 for computer system, the capacity is a RAM in which its storage capacity can be
measures and it must contain approx 200 GB hard drive.
 For Deep freezer it must be 100 to 300 litre so that it can hold the products.
 A coffee machine's capacity vary from 50 to 100 cups coffee (Shi and Xiao 2018).
Performance:
 For computer, its performance must be high such that as its RAM is in between 20 GB
then it must perform at high quality and run at high speed.
 For Deep freezer, its performance should be high quality and run for two days without
charging them.
 For coffee machine, its performance can be measured when it provides at least 70 cups of
coffee.
Size:
 For Deep Chest Freezer, it must be larger in size as they did not have drawers such that
many of them are thinner walls and insulation which means that food can be save for 2-3
days.
 For computer system, its size must ranges up to 1800 sq feet.
 For coffee machine its length must be 400mm .
Budget:
 For computer system the budget estimated as $350.
 For Chest Freezer $ 615 approx.
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 For Coffee machine it varies from $ 55 to $60.
5. 3 prices and quotes from different suppliers
For Computer:
 Jacks Electronics: offer computer for $ 300 with 150 GB RAM and occupies 1500 q feet
space.
 Alex Private Ltd: $350 with 200 GB RAM and size 1800sqft
 Annoy Pvt. Ltd : $ 325 with 175 GB and occupies 1750 sq ft.
For Chest freezer:
 Arena Electronics: offers $ 600 with 100lt machine
 Ropey Refrigerators: Offers $ 650 with 300 Lt.
 Bounden Electronics: Offers $ 630 with 200 Lt.
For Coffee machine:
 Sam Coffee store: Offers item $ 50 who provide 50 cups coffee in a day.
 Telex Coffee: Offer $ 55 – 70 cups of coffee in a day.
 Richard Coffee: Offer $ 60 – 100 cup[s of coffee in a day.
6. Different Financing options
External Commercial Borrowing: Under this, quoted company can take loan and can
take or acquire new products on credit options (Singh, 2018).
Personal Saving: Acumen can also uses its own personal saving in order to acquire those
new products.
Venture Debt: These are the person who provide some finance to small companies so
that they start new work.
7. different finance variants
DEPRECIATION TECHNOLOGICAL
CHANGE
FINANCIAL
IMPACT
COMPUTER
SYSTEM
It decreases as the new
technical changes can
be done
Must be in latest
software and have
high storage capacity.
This creates positive
impact such that helps
in fast calculation.
CHEST FREEZER It maximizes the value
of entire product and
Due to some
7

then price may be high
(Officer and Mitchell,
2018).
technological change
COFFEE MACHINE
8. Explain the official process that needs to be followed.
Item
 Computer system
 Chest Freezer Coffee Machine
Legal contract
An offer is a beginning of a contract. In this one party proposes an agreement to another
including all terms. If, that person rejects it then the offer dies. Further, it can be accepted in
written format. A party with whom contract is made should be at least 18 years old to enter into
contract.
Legal requirements
 Agreement to sell ID proofs
Preparation of documentation for preparation
Computer Fails to meet needs Alex Private Ltd: $350 with
200 GB RAM and size
1800sqft
Chest freezer Dirty smell it provides Ropey Refrigerators: Offers $
650 with 300 Lt.
Coffee machine Leakage problem Richard Coffee: Offer $ 60 –
100 cup[s of coffee in a day.
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ASSESSMENT 2
1. How business aims influence methods used for managing physical assets in the organisation.
 Profitability
Business objectives helps to decide that what is actual needs to be available for the
company functioning (Patacas and et.al., 2015). It also helps to make the discipline charges and
make the best planning source. Profitability is the foremost managing physical assets in the
organisation
 Growth
It is the another is the another method that helps to managing physical assets. Growth
also helps to make the better charge performances.
 Providing quality product and services to customers method
Acumen Kitchen needs. Overall, provide quality of product or services to customers are
also a very much necessary to keep the growth of physical assets.
 Adhering to
Code of conduct
Code of conduct to keep all the equipment and fixtures effective and protective. Overall,
code of conduct helps to make the environment more secure and efficient (Patacas, Dawood,
and Kassem, 2014).
Environmental sustainability philosophies and practices
Environmentally sustainability can also helpful to managing physical assets in a
company. Such as providing safe and healthful workplace, having an environmentally
sustainable aware culture where responsibility, conserving natural resources
Industry accreditation schemes
Accreditation schemes is the term of benchmark established in order to fullfill the ethical
business or customer service need.
2. Different types of physical assets used in hospitality industry
 Chairs, furniture

 Tables, refrigerators
 Building
 Infrastructure
 Coffee machine
 Office supplies
 Marketable securities
 Machinery
 Refrigerator
 R.O
3. 5 Physical assets for training the maintain ace details typically required.
Machineries : Machineries are the first physical assets which required maintenance. In
order to keep all machines well equipped. In order to keep machineries productive and efficient
there is required some details such as keep them safe and secure from water, keep daily records
of use and oversee operation, maintain a schedule of planned maintenance etc.
Cash : In order to keep the proper records of cash. Company needs to follow the all laws
and regulations under Income tax act (Kriege, Jooste and Vlok, 2016). Full fill the all legal,
medical, engineering, architectural, accountancy level needs.
Kitchen Appliances : In order to keep refrigerator or other kitchen appliances safe and
secure. Company needs to take care of them such refrigerator, they required proper checking in
expected time period. Give proper cleaning, use baking soda to remove any stains.
Stock : to keep stock safe and secure, company needs to set up products correctly, invest
in inventory training or keep all records of order or receiving stock.
Building infrastructure : In order to maintained building hospitality industry requires
using echo logical colours and use of less harmful substances.
4. 6 Aspects that considered for the long term assessment of physical assets.
There are some important aspects of physical assets in terms of requirements and
necessity of acquisition (Hastings, 2015). In order to develop long term assessment it requires to
shared vision, prepare long term financial forecast, annual operational plan and annual budget
plan. This process helps to make the proper channel of distribution and glowing part.
2

5.Different types of parameters for acquisition of physical assets
Budget parameters
Budget parameters are most vital source or term to measure the physical assets.
Hospitality industry needs to control the measures of effective budget goals. Acumen Kitchen
needs to make its budget system according to estimated budget cost.
Environmental sustainability policies for the business
This policy helps to built a long term image in front of their clients, it also helps to
sustain the acquisition of physical assets (Persson and Martinsson, 2016). Overall, it helps to
make the proper and most l;eading resourceful goals.
Site plans
Site plans are helpful to keep the all process effective.
Auxiliary items
Auxiliary items, Hospitality company need to keep the stock of substitute goods in order
to keep the working environment properly. For examples Banquet supplies, Buffet Signage,
carving stations etc.
Performance requirements
In order to acquisition of physical assets, company needs to keep, in order to meet the
best possible action plan and also affect the long term growth.
Suitability to products and services offered
In hospitality sector suitability to products and services offered by the company is just to
reflect the customer satisfaction approach.
6. What are the features and benefits of renting equipments.
In order to keep the equipments on lease it helps to provide expansion, rental units can be
an affordable way to grow operational activities. It also helps in short term projects, helps in
budget constraints and product costing (Persson and Martinsson, 2016).
7. What are the features and benefits of using Hire purchases to acquire expensive equipments
Features
 HP generally uses to acquire expensive machineries
 It takes less number of time frame.
Benefits
3

 HP helps company to control deploy assets without significant drain on working capital.
 Flexibility of repayment structuring is available to allow for seasonal business.
8. Features and benefits of leasing equipment and furniture
All companies needs office assets to carry out various activities (4 BENEFITS OF
EQUIPMENT LEASING, 2015). Thus, it is a new idea but also an attractive option. Therefore,
furnitures long average life entails lengthy depreciation period. But if company lease it they can
tax deduct payments easily. Leasing equipments and furnitures enjoys various benefits as
discussed below-
 Office can acquire equipments that is needed urgently rather than worrying about the
constraints of affording.
 Leasing helps in preserving the working capital of a company that later can be invested in
more profitable purposes for a company.
 It becomes possible for company to finance all office related equipments that is required.
 The main advantage is that it frees up cash as equipments don't require down-payments,
company has to set aside some capital for security deposit that is further refundable to the
company.
9. Benefits of purchasing physical assets outright.
Purchasing equipment seems as a good option but it will be a good idea if company
thinks that use of the working capital is in right decision in order of purchasing such equipments
(Gebauer and et.al., 2017). There are various benefits that are discussed below-
 It guarantees that company stays up to date with new and advanced technology available.
 Company fully own the assets unless it is used as security for taking a loan.
 Business that access to better equipments can compete more effectively with competitors
in market place.
10. Purpose and components of physical assets register.
Purpose
Physical asset register are typically used in order to help owners of the business to keep a
complete track record of their fixed assets and all other details that surround those assets
(Klingler, 2017). Thus, with help of such register, particular company can track correct value of
assets that can be later useful for tax purposes and managing assets.
4

Components
 operating criteria
 material specifications
 CMMS tag
 operating status
 performance standard
Thus, company stores each component in easy manner to use application from entire level to the
smallest feature of asset.
11. Assessing about depreciation to a piece of equipments.
Depreciation is accounting method that allocates cost of tangible asset over its useful life
and used for declines in value (Nwanyanwu, 2015).
For example: if piece of equipment is purchased by company at $50,000, particular company can
either write complete cost of equipment in one year or value of asset off over the assets 10year
life. The analyst mainly calculates depreciation as difference between cost and salvage value and
divide it with the total useful life of equipments.
12. Two methods of calculating depreciation.
Depreciation is basically a way of calculating amount of fall in value over a period. It is
also measured as consumption of assets over useful lifetime (Sharam and et.al., 2016). Thus, two
methods of depreciation are discussed below-
 Straight line method- it is suitable when it is hard to determine the pattern of economic
benefits. Thus, depreciation is calculated as per following formula-
Cost of residual value of asset divided by number of years the asset is expected to use.
 Reducing balance method- this method is appropriate when assets usefulness declines
over its useful life. Following formula is used to calculate depreciation-
A fixed percentage is written off balance that is reduced each year. Thus, the balance that is
reduced is the cost of asset less depreciation to date.
13. 4 examples of sources for data to estimate reliable acquisition cost and need to consider in
terms of contractual obligations and ongoing maintenance.
 Quotations- it is a formal statement of promise by supplier that supplies goods or services
that is required by a buyer (Cosci, Guida and Meliciani, 2015). It helps customer to know
5

actual price of an asset. It helps both parties in order to sign contract as quotations
contains detail information about a company.
 Internet- Company provides complete information on internet or websites about the asset
they are acquiring to sell. Individuals feels easy to acquire such assets.
 Advertisements- true and clear information about physical asset has to be advertised on
various sources. This helps in estimating reliable acquisition cost of asset.
 Market line- it is one of the most prolific publishers of business information today that
helps to acquire acquisition cost and maintenance.
14. 3 examples for environmental sustainability that applies to physical assets and outline
environmental and financial benefits.
Renewable energy- this is energy that is generated from resources which is naturally replenished
such as sunlight, wind, rain, tides and geothermal heat. Thus, it will help financially also as many
states offer tax breaks and incentives in order to perform this,
Waste reduction- Manufacturing involves raw materials. Businesses use some part of these
materials and remaining one is thrown away. Company must dispose them so that it may not
affect environment.
Energy audit- Company must conduct energy audit to find out the improvements that are needed.
Consultant has to be hired for larger energy retooling. They must use weather stripping to
prevent air leaks from outside.
CONCLUSION
From above report, it has been analysed that leasing equipment is more benefited than
purchasing equipment outright because leasing helps in maintaining working capital for other use
that is more benefited for the company. It has also been analysed that physical asset is useful in
order to help owner to keep a track of all physical assets.
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oriented companies. International Journal of Production Economics. 192. pp.157-168.
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4 BENEFITS OF EQUIPMENT LEASING. 2015.[online] Available
through:<https://smallbusinessbc.ca/article/starting-a-business-4-benefits-equipment-
leasing/>
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