By Leon Patterson
During asset and financial management workshops, we often find that there is misunderstanding and debate about terminology. Different views on the meaning of terms can be challenging when the finance and technical professionals are working together outside their respective fields.
Subtle differences in similar terms can certainly cause confusion.
To work effectively with asset management and long-term financial planning, we all need to understand each other’s position.
That is one of the main reasons that the IPWEA developed the Australian Infrastructure Financial Management Guidelines (AIFMG). The guidelines aim to help engineers and accountants speak the same language. The guidelines are updated regularly in line with the Australian Accounting Standards. These updates are available on the IPWEA website.
The Guidelines have a 40-page Quick Guide, which is a great summary document that includes six ‘how to’ guides covering various financial activities in easy-to-read, step-by-step flow charts.
Check out the AIFMG Glossary at
www.ipwea.org.au/bookshop/aifmg
This is a free download and provides nationally consistent definitions for the terminology used.