Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Need help from the experts on here :o)

Hey everyone,

Newbie forum member here seeking your wise widom. I have searched this forum as far i could go, in search of some guidence re "unit 10".

A bit of background....... My report is on the Fixed asset register and the current policy in place re DEPN and write off levels, but i'm stuck. I need to do a cost benefit analysis on this system but i'm stuck on what cost in ££ would i save by doing this.

Your advice would be much appreciated.

Claire

Comments

  • sdvsdv Experienced Mentor Registered Posts: 585

    A bit of background....... My report is on the Fixed asset register and the current policy in place re DEPN and write off levels, but i'm stuck. I need to do a cost benefit analysis on this system but i'm stuck on what cost in ££ would i save by doing this.

    Your advice would be much appreciated.

    Claire

    Consider this

    Your company has decided to buy a lap top for every manager and assistant managers so that they can continue to be productive whilst travelling on the train to and from the office.

    Problem: our company has a relatively high turn over in employing managers and assistant managers, because they can’t get IT support on the train!

    Without the proper system in the place, to collect the correct lap top from the employee on the termination of employment, what are the costs to the company?

    Note: (proper systems – tie up with Fixed Asset Register)

    With implementation of a systematic check list before issuing the final salary cheque and P45 to the leaving employee (recommendation made by you of course), what are the likely cost of losing a lap top?

    The difference is your cost savings!
  • shaunjubbshaunjubb Feels At Home Registered Posts: 25
    i need abit more information on what you are actually changing in the fixed asset register...
  • claire~thomasclaire~thomas New Member Registered Posts: 8
    Thanks SDV, thats great, i didnt think of that aspect of it.

    Shaunjubb, we currently have assts on the register going back to 1993 which we still depreciate on and mostly likely dont have (i have inherited the system from a previous employee) it was highlighted in our audit that we need to bring it up to date, ie write of level to be increased from £250 to £1000, changing the depreciation years from 5 to 3, that kind of thing. So in the end it would give the company a better value of the assets.

    Claire
  • shaunjubbshaunjubb Feels At Home Registered Posts: 25
    okay then the cost benefit analysis seems pretty simple , its the cost of you implementing the changes ( probably employees wage per hour*how many hours to create and maintain the new change ) vs the cost saved on the value of all the assets by removing the older depreciation and only using 3 years
  • claire~thomasclaire~thomas New Member Registered Posts: 8
    Thanks shaunjubb :o)
Sign In or Register to comment.