Maintaining financial recorder Essay Example | Topics and Well Written Essays - 1500 words

Maintaining financial recorder - Essay utilizationAll business require tangible amend as puzzles which are defined by IAS 16 as tangible items that a) are held for use in the production or supply of goods or services for term of a contract to others or for administrative purposes and b) are expected to be used during more than one period (IASB 2008). typically these include land, building, office, fixtures and fittings etc. which are deemed necessary to operate and carry out different activities. The fixed assets are for long term and their encyclopedism postulates large amounts of funds which companies need to raise either through inseparable equity or by borrowing from financial institutions. Therefore, the authorization of the secure of fixed assets requires delegation of place to individuals who may be involved in maintaining fixed asset system or overlooking the absolute purchase process. The procedures for the authorizing individuals of the purchase of fixed assets sho uld be part of the beau mondes policy that should clearly set out the positions and authority levels of individuals who can direct purchase of fixed assets. The delegation of authority depends upon the structure of the company and also relies on the nature of the business that the company is operating in. Capital expenditures which are beyond limits of individuals at departmental levels have to be authorized by the higher management. In addition to tangible fixed assets there are also intangible assets which include goodwill, brand, trademarks, copyrights which are purchase and authorizeAsset acquisition typically initiates from the departmental manager assessment of the requirements of his / her department in terms of fixed assets to be purchased. These involve either purchase of a new asset or replace an existing one. The authorization of departmental managers is assigned and managed according to the price level of fixed assets that could be ordered. Departmental managers can aut horize purchase of fixed assets