Asset Management Summary: 

Asset Management involves the strategic planning, acquisition, utilization, maintenance and disposal of assets to achieve desired outcomes. Assets can include financial instruments, physical properties, infrastructure, technology, human resources and more. Asset management involves categorizing and classification these assets based on their characteristics and functions. An asset register is maintained to record crucial information about each asset, such as acquisition date, cost, location, and depreciation.

Asset management is crucial for users to understand how to calculate depreciation, book value reduction, estimate life, and take residual value into consideration. The field of Asset Management involves the systematic oversight and optimization of various assets, encompassing their entire lifecycle from acquisition to disposal. This comprehensive process ensures that assets are strategically managed to achieve organizational goals while minimizing risks and maximizing value.

Several areas, including finance, procurement, inventory management, etc., are significantly impacted by asset management. the Asset management is essentially the intentional and planned handling of assets over the course of their lifecycle to ensure they favorably impact an organization’s operational effectiveness, financial performance, and overall success. Asset management plans the movement of assets, resulting in efficient use, improved performance, and informed choices.