What is ISO/TS 55010- Alignment of functions in asset management about?
ISO/TS 55010 is an international standard that focuses on guidance for asset management and the alignment of financial and non-financial functions. ISO/TS 55010 gives guidelines for the alignment between financial and non-financial asset management functions to improve internal control as part of an organization’s management system.
Who is ISO/TS 55010- Alignment of functions in asset management for?
ISO/TS 55010 on and alignment of financial and non-financial functions useful for:
- Top management and decision-makers, to derive the benefits that are achievable by better alignment between financial and non-financial functions
- Those in asset-related multidisciplinary functions who provide information to support decision-making or rely on the outcomes of those decisions
- A wide range of personnel, including those who have responsibility for the technical planning, design, construction, operation, maintenance and performance of the assets and those with financial responsibilities such as accounting, financial planning, budgeting and financial reporting
Why should you use ISO/TS 55010- Alignment of functions in asset management?
In many organizations, the financial and non-financial functions of asset management are inadequately aligned. Often the financial accounting functions are predominantly focused on retrospective reporting of accounting/regulatory financial activities. However, there is a growing awareness in organizations of the need to focus on providing a managerial costing approach to support decision-making for the future.
ISO/TS 55010 has raised awareness of the importance of improving alignment between an organization’s financial and non-financial functions and providing guidance.
In ISO/TS 55010 financial functions refer to processes and activities such as managerial costing and accounting, budgeting, financing and valuation related to the assets. Non-financial functions are the complementary processes and activities, for providing a product or service from the assets. Lack of alignment between financial and non-financial functions can be attributed to silos in an organization, including reporting structures, functional/operational business processes, and related technical data.
The aim of ISO/TS 55010 is to encourage organizations to support alignment between these asset management functions and provide guidance on how such alignment can be achieved.
ISO/TS 55010 also promotes the benefits that can be achieved for an organization and its stakeholders by having alignment of these asset management functions better understood, implemented and improved. This enables an organization’s functional areas to share information and collaborate to achieve its objectives.