Maximize Value & Productivity with
Componentization
Componentization is an approach generally used for property, plant and equipment, where fixed assets have major identifiable components. Components with substantially different useful lives are identified and these assets are treated as separate components and depreciated over their different useful lives.
Componentization makes it easier to manage the accounting aspects of asset renewal, and may reduce the amount of residual value that needs to be assigned to complex assets. Componentization requires each part of a fixed asset with a cost that is significant in relation to the total cost of the item to be depreciated separately.
Need for componentization of assets
- To comply with the requirements under Companies Act
- IFRS requires a ‘Component Approach’ when accounting for property, plant and equipment
At RNC, we provide a wide array of Techno Commercial advisory for componentization of the assets enabling the investors and auditors to achieve compliance.
Our rich experience and proven expertise has made us a top provider of fixed asset componentization coupled with other advisory services like asset tagging, valuation, due diligence, and TEV report, to name a few.
Credentials
Nirlon Knowledge Park
Componentization of 23 acres campus having a total development of approximate 3 million sq. ft. LEED gold rated office space assets for accounting purpose.
Mazgaon Dock Limited –
Componentization of Shipyard assets for accounting purpose.
PI Industries Limited
Componentization of assets for their manufacturing facilities.