Designed for: accountants, finance managers, controllers, process owners and reviewers working inside organisations.
1. Process objective
Connect capex approval, project execution, asset readiness, depreciation, verification and disposal. The process should produce a result that is complete, accurate, supported, approved and traceable to the financial statements.
2. Core workflow
- Use approved capex codes and project owners.
- Track CWIP by project and age.
- Certify ready-for-use date before capitalisation.
- Tag assets and identify material components.
- Reconcile additions, depreciation, transfers and disposals to ledger.
3. Practical situation
A machine is invoiced in January but installed and ready in March. It remains in CWIP until ready-for-use certification, and depreciation starts from the appropriate March date.
4. Ownership model
| Role | Responsibility |
|---|---|
| Preparer | Obtains source data, performs the calculation or reconciliation and explains exceptions. |
| Process owner | Confirms operational facts, resolves missing information and approves business assumptions. |
| Reviewer | Challenges completeness, accounting treatment, material judgments and unresolved items. |
| Controller | Monitors completion, escalates risk and ensures the result flows correctly into reporting. |
5. Minimum evidence pack
- Approved policy or process note
- Source-system report and data lineage
- Reconciliation or calculation schedule
- Exception log with owner and ageing
- Preparer and reviewer sign-off
6. Reviewer challenge
- Is the population complete and tied to the general ledger?
- Are aged or unusual items separately explained?
- Does the treatment follow the entity policy and applicable standard?
- Are assumptions supported by current information?
- Is every adjustment posted, approved and traceable?
Newton of Accounts approach:
Conceptual clarity is drawn from CA Pranav P. Tulshyan’s accounting teaching work, then independently developed into professional workflows, controls and documentation for company accounts.