AMS Implementation Principle: Accounting Transparency

Principles for Asset Management System Implementation Miniseries

This AMP Newsletter highlights how the Accounting Transparency Principle supports implementation of an ISO 55000/1 conforming Asset Management System (AMS) and its enabling Asset Management (AM) Framework.  The AM Framework, shown below, establishes a decision-making logic that coordinates different Management Activity Groups (MAGs) to operationalize an organization’s AMS.  The purpose of the AM Framework is to define value and apply this definition to drive organizational performance and value realization.

Asst Management Framework

The Accounting Transparency Principle is defined in the US National Academies report Strategies to Renew Federal Facilities as follows:

“Accounting Transparency: Federal facility accounting structures must support integrated and auditable analysis of financial and nonfinancial aspects to perform facility asset management activities supporting planned-versus-actual reconciliation of performance objectives.”

The balance of this article will establish context, ISO 55000/1 alignment, AM Framework reduction, AM Framework implementation, and derived benefits from the Accounting Transparency Principle.