There are many acronyms and specialised terms used in the Asset Management arena. Some terms are well defined and others are not.
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Critical Asset - A critical asset is an asset for which the financial, business or service level consequences of failure are sufficiently severe to justify proactive inspection and rehabilitation. Critical assets have a lower threshold for action than non-critical assets.
Criticality - Criticality is the quality, state, or degree of being of the highest importance.
Cultural Asset - A cultural asset is an asset of cultural significance, that won't depreciate in value over time. Examples of cultural assets include artworks & antique furniture.
Current Asset - A "current asset" is an asset which is expected to be sold or consumed within one financial year.
Current Replacement Cost - Current Replacement Cost (CRC) is a synonym for Replacement Cost.
Cyclical Maintenance - Cyclical Maintenance or cyclic maintenance is maintenance which is repeated on a periodic basis.
Defect - A defect is an imperfection within an asset that could potentially lead to the premature failure of the asset.
Degradation Curve - A degradation curve is a graph of an asset's condition or remaining service potential plotted over time.
Depreciation - Depreciation is the reduction in the value of an asset due to usage, passage of time, environmental factors, wear and tear, obsolescence, depletion or inadequacy.
Deprival Value - The Deprival Value of an asset is the value of the present owner if the owner were deprived of the asset and was required to continue to deliver the same level of service. Assets are valued at an amount that represents the entire loss that might be expected to be incurred if the entity were deprived of the service potential or future economic benefits of particular assets at the reporting date. This is a valuation basis that reflects a non-market concept of the value in use of assets as part of a going concern.
Desktop Revaluation - A desktop revaluation is a revaluation of an asset classes undertaken without physical inspection of the assets, typically done by applying revised unit rates to known quantities of assets.
Development Manual - A Development Manual is a document that explains a Council's policies and specifications for land development, and specifies the standards that developments must adhere to.
Disposal Plan - A Disposal Plan is a document that defines how an organisation decides when an asset should be retired or disposed of, and the activities associated with the process, including sale, demolition or relocation. Disposal Plans are often a section within an Asset Management Plan.
Donated Asset - [[include i:donated-asset]]
Economic Life - The Economic Life of an asset is the length of time for which maintaining and operating the asset remains the lowest cost alternative for providing a nominated level of service. "
Facility - A facility is a defined area containing a number of assets that are associated in some way. A simple facility could consist of a single main building and the grounds and infrastructure (e.g. car parks and fencing) surrounding it. A more complex facility, (e.g. a depot or a water treatment plant) could contain many buildings and/or other types of assets.
Failure of an Asset - An asset may be considered to have failed if its function is no longer in accordance with the asset's performance requirements.
Fair Value - Fair Value is "the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties, in an arms length transaction." This is equivalent to the market value of the asset where one exists. If there is no market the fair value can be determined on a (depreciated) cost of acquisition basis.
Financial Capitalisation Threshold - A financial capitalisation threshold or asset recognition threshold is a dollar amount below which expenditure is treated as recurrent expenditure, even if it associated with an activity that is typically capital in nature.
Fixed Asset Register - A fixed asset register is a high-level, asset register designed primarily to cater for the financial aspects of asset management rather than the engineering & operational aspects of asset management.
External Links & References
- DERM
- Queensland Department of Local Government, Sport & Recreation Glossary of Terms
- Wingecarribee Shire Asset Management Terminology
- Institute of Asset Management Definitions Page
- City of Joondalup Works Category Definitions
- Asset Management Series Glossary
- South Australian Road Traffic Act Definitions
- Wealth of Opportunities Glossary
- Google Search