Raising Confidence in Fixed Asset Accounting

Before ASI

The fifteenth largest power company in the United States has as complicated a Fixed Asset environment as can be. Literally millions of elements make up their Fixed Assets and ins and outs of each must be tracked and accounted for. Inconsistencies and descrepancies were commonplace. The impact on rate making and approval is material. If cost is understated for rate making purposes, it can never be recovered.

What ASI Solved

ASI monitors data (i.e. new additions, retirements, transfers, adjustments, etc.) that influences the depreciation of Fixed Assets, ensuring it is valid and flows correctly into the depreciation calculation. Depreciation flux analysis is performed, including calculating the detailed drivers of the period-over-period differences. Additionally, the full life cycle of assets from construction/acquisition/purchase to retirement/decommissioning is tracked and validated between project management, GL, and operational systems.

As a result of ASI, Fixed Asset accounting is now more accurate than ever resulting in a high level of confidence.