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Insurance | Fixed Assets | Ghost Assets | Structured Finance
GHOST ASSETS
Description of Services: The Capital Asset Analysis & Review (“CAAR”) solution is a service provided by Marshall & Stevens experts to assist our clients with optimizing and enhancing asset management and fixed asset records. According to an article in The CPA Journal, historically a range of 15 to 25 percent of tangible personal property costs needs to be removed from a company’s property record in order to expunge ghost assets. The policies and procedures we incorporate ensure collection of data is accurate, asset records are cleansed, and property records are complete and updated.
Benefits:
- Supports management’s statements of establishing and maintaining adequate internal control over financial reporting (Sarbanes Oxley compliance)
- Property Tax saving opportunities
- Provides accurate fixed asset data
- Reduces insurance premiums
- Identifies and eliminates non-existent assets, optimizes return-on-asset ratios
- Reduces the need for property management workforce
User of this Service:
Public Companies
Sarbanes-Oxley currently applies to public companies that are registered with the Securities and Exchange Commission. The requirements of Section 404 must be met by large public corporations.
Private Companies
Although private companies are not required to comply with Sarbanes-Oxley, there are excellent reasons for them to consider its implications. Any private company that aspires to go public will become subject to the act upon filing a registration statement with the SEC in anticipation of an IPO. Additionally, any company that might be acquired by public companies or that has significant business partnerships with public corporations will need to assess the impact of Sarbanes-Oxley on future and current business relationships.
Capital intensive, acquisition oriented, or renovation intensive businesses benefit from updated fixed asset records aiding in planning, financial management, asset management, insurance and tax reporting.
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