Organisational Policies and Procedures

Front

What are organisational policy and procedures?

Back

Policies and procedures are designed to influence and determine all major decisions and actions, and all activities take place within the boundaries set by them. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization.

Front

Why is it important to follow organisational policies and procedures?

Back

Policies and procedures are an essential part of any organization. Together, they provide a roadmap for day-to-day operations, ensure compliance with laws and regulations, give guidance for decision-making, and streamline internal processes.

Front

What is the asset register?

Back

The asset register is an important part of the internal control over property, plant and equipment assets. These assets will have identification numbers so they can be tracked and not lost. The register has the same function as a subsidiary ledger.

Front

Which types of assets is the asset register used for?

Back

They are used for non-current assets, property, plant and equipment.

Front

How are assets tracked?

Back

Assets are tracked through their identification number, e.g., serial number.

Front

The asset register has the same function as a?

Back

The register has the same function as a subsidiary ledger. Each individual asset is recorded at cost price in the register.

Front

What must the total number of asset registers match? Give an example.

Back

The total of all register records for each type of asset would agree with the total in the control account for that asset in the general ledger. For example, all individual motor vehicles shown in individual assets registers would agree with the total in the motor vehicle account (control account) in the general ledger.

Front

What information relating to disposal can be found on an asset register?

Back

The cost of the asset and the accumulated depreciation recorded up to the last accounting period.

Front

Explain accounting processes to record the disposal of non-current assets.

Back

1. Depreciate the asset for that part of the current accounting period for which the asset has been used. 2. Transfer the cost of the asset sold from the asset account to the disposal account. 3. Transfer any depreciation that has accumulated on the asset sold from the Accumulated Depreciation account to the Disposal Account. 4. Record the disposal price of the asset in the disposal account. 5. Determine whether a gain or loss has been made on the disposal of the asset.