Capital accounting and valuation

Our capital and valuation modules allow you to measure and record assets in line with International Financial Reporting Standards and the IFRS-based code of practice on local authority accounting in the United Kingdom (the code).

Our software team work very closely with CIPFA colleagues who not only drafted 'The Code' but are also provide practitioners with the guidance. We are in a unique position to ensure that all the financial components of the software meet CIPFA guidance.

Capital accounting module

This module handles the accounting entries to fulfill CIPFA's accounting requirements for tangible fixed assets as outlined in ‘The Code’.

This includes the requirements that all assets:

  • made up of properties, buildings, housing and plant vehicles and equipment must be valued and included in the authority’s consolidated balance sheet.
  • must be charged to their respective users (cost centres) by means of a capital charge. The charges calculated against each asset and applied to individual cost centres within the software and there is functionality to set up the asset records required to meet the requirements above.

Componentisation of all assets within the software is provided for in accordance with CIPFA LAAP Guidance.

The ability to forecast

AssetManager.NET includes a budget year facility allowing for a copy of the live database to be taken and 'what if' scenarios created for future capital asset decisions, or to test the year end figures prior to closing the accounts. These budget years can be rolled over in the same way as the live financial year. This allows the user to see the effect of changes within the system against both individual assets or categories of assets within the register.

Plant vehicles and equipment module

The plant vehicles and equipment module allows for recording of details of all PVE assets. The details for these assets can then be linked to property or building assets within the core module and revalued in the valuation module for inclusion in the capital accounting module.

Housing module

The housing module allows for recording of housing groups, archetypes and individual units. These assets can be revalued in the valuation module and feed into capital accounting in order to form part of the overall balance sheet.

Valuation module

The valuation module is designed to allow valuations to be held for properties at land and building level and also valuation of housing stock and plant vehicles and equipment assets. Several methods of valuation can be held but only one of the valuation methods for the asset can be passed to the accounting entries module. Revaluation losses which arise when an asset is re-valued down is automatically calculated and recorded. A re-instatement valuation for insurance purposes can also be held.

Benefits

  • Dedicated screens for addition and update of assets 
  • Validated pick lists for ease of data input and accuracy 
  • Intelligence via automatic rules built into the modules which have been developed in conjunction with colleagues who developed ‘The Code’ 
  • Generation of year end reports and journals enabling considerable time saving 
  • Prescribed mandatory fields to ensure data is complete 
  • Transaction types include full and partial disposals, transfers, calculation of changes to life expectancy, revaluations and componentisation 
  • The Capital Accounting audit file holds a history of all user actions showing which records were affected 
  • Utilises a full range of reports with multiple filter options for comprehensive enquiries and reporting 
  • Data links seamlessly with the other modules within AssetManager.NET