Table of contents
1 Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2 Abbreviations
3 Definitions
4 Investment / Divestment
4.1 Control evidence
5 Major Repairs
5.1 Process

Objective and Scope

Objective of this Procedure

The purpose of this document is to describe the actions needed to correctly apply the Internal Control FXA.01.02  – Divestment for each maintenance shutdown.

Scope

This operating procedure (OP) applies to PF2 and WP2 within the Syensqo Business Services scope of entities.

Abbreviations

(N/A)

Definitions

The process to assuring achievement of an organization's objectives in operational effectiveness and efficiency, which aim is to ensure the compliance with laws, regulations and Group policies and procedures.

Investment / Divestment

(...)

Major Repairs

Divestment for each maintenance shutdown (IFA.01.02)
The aim of major maintenance work is to verify that the asset is being kept in good condition without modifying its life. The costs should be recognized as major maintenance costs. These costs should be considered as a capitalized component if: - They belong to a multi-annual recurring major maintenance operation,- Total costs reach a minimum threshold of 500 kEUR.
Every quarter this process should be performed in order to identify the fixed-asset for Major Repair which should to be removed.

• Minimum frequency: At each quarterly
• Control owner function: Service Center Management Accounting Service Unit

• Application level: Group - All assets (tangible & intangible) - Period of controls: each quarterly.

• Control description:  SU MAC extracts before the 15th of each quarterly closing month the list of shutdowns (based on asset class) capitalized and checks for each case that a divestment was booked concerning the previous shutdown. If it is not the case, SU MAC alerts the SU MAC I&D Key User who will take corrective actions.

• Risk description:

Misstatement of financial reporting (including non-compliance to IFRS rules): financial statements do not reflect the true value of the company's assets

Process:

Go to AR01
Using variant: /I.D MAJOR R(WP2)   ,  /MAJOR REPAIR(PF2)
You will obtain the following screen

• Check the company code list
• Update the reporting date (last day of the quarter)

Execute the transaction

• Extract the result to excel file

• Then the analysis is done by company code and plant and if we have may assets by plant we also check it by cost center

In this case:
Company code : ZFR9
Plant: 7866
CC: 7866-1201
We can see that we have two situation where the fixed assets have the same description.
In yellow we can see cases where are potential major repairs.
The project manager received our reports (by plant) and decides if they should be removed from the company.



End of document