IEC TS 62775:2016

IEC TS 62775 ®
Edition 1.0 2016-05
TECHNICAL
SPECIFICATION
colour
inside
Application guidelines – Technical and financial processes for implementing
asset management systems
All rights reserved. Unless otherwise specified, no part of this publication may be reproduced or utilized in any form
or by any means, electronic or mechanical, including photocopying and microfilm, without permission in writing from
either IEC or IEC's member National Committee in the country of the requester. If you have any questions about IEC
copyright or have an enquiry about obtaining additional rights to this publication, please contact the address below or
your local IEC member National Committee for further information.

IEC Central Office Tel.: +41 22 919 02 11
3, rue de Varembé Fax: +41 22 919 03 00
CH-1211 Geneva 20 info@iec.ch
Switzerland www.iec.ch
About the IEC
The International Electrotechnical Commission (IEC) is the leading global organization that prepares and publishes
International Standards for all electrical, electronic and related technologies.

About IEC publications
The technical content of IEC publications is kept under constant review by the IEC. Please make sure that you have the
latest edition, a corrigenda or an amendment might have been published.

IEC Catalogue - webstore.iec.ch/catalogue Electropedia - www.electropedia.org
The stand-alone application for consulting the entire The world's leading online dictionary of electronic and
bibliographical information on IEC International Standards, electrical terms containing 20 000 terms and definitions in
Technical Specifications, Technical Reports and other English and French, with equivalent terms in 15 additional
documents. Available for PC, Mac OS, Android Tablets and languages. Also known as the International Electrotechnical
iPad. Vocabulary (IEV) online.

IEC publications search - www.iec.ch/searchpub IEC Glossary - std.iec.ch/glossary
The advanced search enables to find IEC publications by a 65 000 electrotechnical terminology entries in English and
variety of criteria (reference number, text, technical French extracted from the Terms and Definitions clause of
committee,…). It also gives information on projects, replaced IEC publications issued since 2002. Some entries have been
and withdrawn publications. collected from earlier publications of IEC TC 37, 77, 86 and

CISPR.
IEC Just Published - webstore.iec.ch/justpublished
Stay up to date on all new IEC publications. Just Published IEC Customer Service Centre - webstore.iec.ch/csc
details all new publications released. Available online and If you wish to give us your feedback on this publication or
also once a month by email. need further assistance, please contact the Customer Service
Centre: csc@iec.ch.
IEC TS 62775 ®
Edition 1.0 2016-05
TECHNICAL
SPECIFICATION
colour
inside
Application guidelines – Technical and financial processes for implementing

asset management systems
INTERNATIONAL
ELECTROTECHNICAL
COMMISSION
ICS 03.120.01; 03.120.10 ISBN 978-2-8322-3391-7

– 2 – IEC TS 62775:2016 © IEC 2016

CONTENTS
FOREWORD . 4
INTRODUCTION . 6
1 Scope . 7
2 Normative references. 7
3 Terms and definitions . 7
4 Management systems environment . 10
4.1 Overview. 10
4.2 Benefits to asset management from integrating financial and technical
processes . 10
4.3 ISO 5500x suite – Asset management . 11
4.4 Systems engineering . 11
4.4.1 Overview . 11
4.4.2 Characteristics of a system . 11
4.4.3 Application of ISO/IEC/IEEE 15288 . 12
4.4.4 System life cycle processes . 12
4.5 IFRS and IAS standards . 15
4.5.1 Overview . 15
4.5.2 Conceptual framework. 15
4.6 IEC dependability suite . 16
4.6.1 Overview . 16
4.6.2 Dependability principles . 16
4.6.3 Dependability management . 16
5 Technical and financial standards for an AMS . 17
5.1 Integration of technical and financial standards for asset management . 17
5.2 Relating AMS to systems engineering . 17
5.3 Mapping system life cycle processes to dependability standards and IFRS
and IAS standards . 18
6 Intended use of the information provided in this Technical Specification . 20
Annex A (informative)  International IFRS and IAS information . 21
Annex B (informative) Mapping ISO 55001 AMS requirements to ISO/IEC/IEEE 15288
system life cycle processes . 23
Annex C (informative) Mapping ISO/IEC/IEEE 15288 processes to IEC dependability
and IFRS and IAS standards . 24
Bibliography . 31

Figure 1 – System life cycle processes – ISO/IEC/IEEE 15288:2015 . 14
Figure 2 – Elements of an AMS . 18
Figure 3 – Set of technical processes used for managing assets . 19

Table A.1 – International IFRS and IAS information . 21
Table B.1 – Mapping ISO 55001 AMS requirements to ISO/IEC/IEEE 15288 system life
cycle processes . 23
Table C.1 – Agreement processes . 24
Table C.2 – Organizational project enabling processes . 25

Table C.3 – Technical management processes . 26
Table C.4 – Technical processes (continued) . 28

– 4 – IEC TS 62775:2016 © IEC 2016
INTERNATIONAL ELECTROTECHNICAL COMMISSION
____________
APPLICATION GUIDELINES – TECHNICAL AND FINANCIAL
PROCESSES FOR IMPLEMENTING ASSET MANAGEMENT SYSTEMS

FOREWORD
1) The International Electrotechnical Commission (IEC) is a worldwide organization for standardization comprising
all national electrotechnical committees (IEC National Committees). The object of IEC is to promote
international co-operation on all questions concerning standardization in the electrical and electronic fields. To
this end and in addition to other activities, IEC publishes International Standards, Technical Specifications,
Technical Reports, Publicly Available Specifications (PAS) and Guides (hereafter referred to as “IEC
Publication(s)”). Their preparation is entrusted to technical committees; any IEC National Committee interested
in the subject dealt with may participate in this preparatory work. International, governmental and non-
governmental organizations liaising with the IEC also participate in this preparation. IEC collaborates closely
with the International Organization for Standardization (ISO) in accordance with conditions determined by
agreement between the two organizations.
2) The formal decisions or agreements of IEC on technical matters express, as nearly as possible, an international
consensus of opinion on the relevant subjects since each technical committee has representation from all
interested IEC National Committees.
3) IEC Publications have the form of recommendations for international use and are accepted by IEC National
Committees in that sense. While all reasonable efforts are made to ensure that the technical content of IEC
Publications is accurate, IEC cannot be held responsible for the way in which they are used or for any
misinterpretation by any end user.
4) In order to promote international uniformity, IEC National Committees undertake to apply IEC Publications
transparently to the maximum extent possible in their national and regional publications. Any divergence
between any IEC Publication and the corresponding national or regional publication shall be clearly indicated in
the latter.
5) IEC itself does not provide any attestation of conformity. Independent certification bodies provide conformity
assessment services and, in some areas, access to IEC marks of conformity. IEC is not responsible for any
services carried out by independent certification bodies.
6) All users should ensure that they have the latest edition of this publication.
7) No liability shall attach to IEC or its directors, employees, servants or agents including individual experts and
members of its technical committees and IEC National Committees for any personal injury, property damage or
other damage of any nature whatsoever, whether direct or indirect, or for costs (including legal fees) and
expenses arising out of the publication, use of, or reliance upon, this IEC Publication or any other IEC
Publications.
8) Attention is drawn to the Normative references cited in this publication. Use of the referenced publications is
indispensable for the correct application of this publication.
9) Attention is drawn to the possibility that some of the elements of this IEC Publication may be the subject of
patent rights. IEC shall not be held responsible for identifying any or all such patent rights.
The main task of IEC technical committees is to prepare International Standards. In
exceptional circumstances, a technical committee may propose the publication of a Technical
Specification when
• the required support cannot be obtained for the publication of an International Standard,
despite repeated efforts, or
• the subject is still under technical development or where, for any other reason, there is the
future but no immediate possibility of an agreement on an International Standard.
Technical Specifications are subject to review within three years of publication to decide
whether they can be transformed into International Standards.
IEC TS 62775, which is a Technical Specification, has been prepared by IEC technical
committee 56: Dependability.
The text of this Technical Specification is based on the following documents:
Enquiry draft Report on voting
56/1644/DTS 56/1675/RVC
Full information on the voting for the approval of this Technical Specification can be found in
the report on voting indicated in the above table.
This publication has been drafted in accordance with the ISO/IEC Directives, Part 2.
The committee has decided that the contents of this publication will remain unchanged until
the stability date indicated on the IEC website under "http://webstore.iec.ch" in the data
related to the specific publication. At this date, the publication will be
• transformed into an International Standard,
• reconfirmed,
• withdrawn,
• replaced by a revised edition, or
• amended.
A bilingual version of this publication may be issued at a later date

IMPORTANT – The 'colour inside' logo on the cover page of this publication indicates
that it contains colours which are considered to be useful for the correct
understanding of its contents. Users should therefore print this document using a
colour printer.
– 6 – IEC TS 62775:2016 © IEC 2016
INTRODUCTION
Asset management is a multi-disciplinary business activity comprising financial, technical and
risk components. Effective control and governance of assets by organizations is essential to
realizing value from their use through the management of risk. The value derived through the
use of assets is determined by the organization.
The organization's decision-making processes are effective when they address technical and
financial risks together and when those processes achieve a ‘desired balance of cost, risk and
performance’- as required by the ISO 5500x asset management suite. Thus, the processes
developed within the asset management system (AMS) need to integrate financial and
accounting procedures with technical and management activities, using risk based decision
making.
The ISO 5500x asset management suite of standards defines the principles of asset
management and documents the requirements for an AMS that implements those principles.
However, ISO 55001 explicitly excludes information necessary to implement the technical and
financial processes in support of the management of assets.
The IEC dependability suite of standards provide guidance on technical processes and
techniques that achieve desired availability, reliability, maintainability and supportability of
assets, products and systems. Systems engineering standards describe the life cycle of
systems and define the processes needed for the engineering management of a system while
the International Financial Reporting Standards (IFRS) provides a suite of globally accepted
international financial reporting standards and a suite of supporting accounting standards in
the form of the International Accounting Standards (IAS).
This Technical Specification demonstrates the relationship between the ISO AMS standards,
the ISO/IEC/IEEE systems engineering standards, the IEC dependability standards and the
IFRS and IAS financial standards.

APPLICATION GUIDELINES – TECHNICAL AND FINANCIAL
PROCESSES FOR IMPLEMENTING ASSET MANAGEMENT SYSTEMS

1 Scope
IEC 62775, which is a Technical Specification, shows how the IEC dependability suite of
standards, systems engineering and the IFRS and IAS standards can support the
requirements of asset management, as described by the ISO 5500x suite of standards.
This Technical Specification therefore provides
• a brief introduction to asset management and the requirements for an AMS,
• a description of the benefits from the use of an established and common set of AMS
processes and procedures, tools and techniques to manage assets, and
• a description of the relationships between the AMS and the tools and techniques,
processes and procedures of
– ISO/IEC/IEEE 15288:2015, Systems and software engineering – System lifecycle
processes,
– IEC dependability standards in particular IEC 60300-3-15, and
– relevant IFRS and supporting IAS standards.
This Technical Specification is intended for
• asset managers who wish to identify and implement technical and financial processes
within an AMS, using dependability techniques and IFRS and IAS standards respectively,
and
• systems and dependability engineers who need to apply their technical processes and
techniques within an AMS.
2 Normative references
The following documents, in whole or in part, are normatively referenced in this document and
are indispensable for its application. For dated references, only the edition cited applies. For
undated references, the latest edition of the referenced document (including any
amendments) applies.
ISO 55001:2014, Asset management – Management systems – Requirements
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
3.1
accrual accounting
accounting which depicts the effects of transactions and other events and circumstances on a
reporting entity’s economic resources and claims in the periods in which those effects occur,
even if the resulting cash receipts and payments occur in a different period
Note 1 to entry: In order to meet their objectives, financial statements are prepared on the accrual basis of
accounting.
[SOURCE: IFRS – IASB Conceptual Framework for Financial Reporting 2010]

– 8 – IEC TS 62775:2016 © IEC 2016
3.2
asset
item, thing or entity that has potential or actual value to an organization
Note 1 to entry: Value can be tangible or intangible, financial or non-financial, and includes consideration of risks
and liabilities. It can be positive or negative at different stages of the asset life.
Note 2 to entry: Physical assets usually refer to equipment, inventory and properties owned by the organization.
Physical assets are the opposite of intangible assets, which are non-physical assets such as leases, brands, digital
assets, use rights, licences, intellectual property rights, reputation or agreements.
Note 3 to entry: A grouping of assets referred to as an asset system could also be considered as an asset.
[SOURCE: ISO 55000:2014, 3.2.1]
3.3
asset management
coordinated activity of an organization to realize value from assets
Note 1 to entry: Realization of value will normally involve a balancing of costs, risks, opportunities and
performance benefits.
Note 2 to entry: Activity can also refer to the application of the elements of the asset management system.
Note 3 to entry: The term “activity” has a broad meaning and can include, for example, the approach, the
planning, the plans and their implementation.
[SOURCE: ISO 55000:2014, 3.3.1]
3.4
asset management objective
overarching objective that sets the context and direction for an organization’s asset
management activities
Note 1 to entry: Asset management objectives are established through the strategic level planning activities of the
organization.
[SOURCE: ISO 55000:2014, 3.1.14, modified — the preferred term "organizational objective"
has been replaced by "asset management objective" and in the definition "asset management"
has been added]
3.5
asset management system
AMS
management system for asset management whose function is to establish the asset
management policy and asset management objectives
Note 1 to entry: The asset management system is a subset of asset management.
[SOURCE: ISO 55000:2014, 3.4.3]
3.6
fair value
price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date (as might appear on the
organizational balance sheet)
[SOURCE: IFRS 13:2013 Fair Value Measurement, modified — “(as might appear on the
organizational balance sheet)” has been added]

3.7
management system
set of interrelated or interacting elements of an organization to establish policies and
objectives and processes to achieve those objectives
Note 1 to entry: A management system can address a single discipline or several disciplines.
Note 2 to entry: The system elements include the organization’s structure, roles and responsibilities, planning,
operation, etc.
Note 3 to entry: The scope of a management system may include the whole of the organization, specific and
identified functions of the organization, specific and identified sections of the organization, or one or more
functions across a group of organizations.
[SOURCE: ISO 55000:2014, 3.4.2].
3.8
dependability
ability to perform as and when required
Note 1 to entry: Dependability includes availability, reliability, recoverability, maintainability, and maintenance
support performance, and, in some cases, other characteristics such as durability, safety and security.
Note 2 to entry: Dependability is used as a collective term for the time-related quality characteristics of an item.
[SOURCE: IEC 60050-192:2015, 192-01-22]
3.9
process
set of interrelated or interacting activities which transforms inputs into outputs
[SOURCE: ISO 55000:2014, 3.1.19]
3.10
risk
effect of uncertainty on objectives
Note 1 to entry: An effect is a deviation from the expected — positive and/or negative.
Note 2 to entry: Objectives can relate to different disciplines (such as financial, health and safety, and
environmental goals) and can apply at different levels (such as strategic, organization-wide, project, product and
process).
Note 3 to entry: Risk is often characterized by reference to potential "events" (as defined in ISO Guide 73:2009,
3.5.1.3) and "consequences" (as defined in ISO Guide 73:2009, 3.6.1.3), or a combination of these.
Note 4 to entry: Risk is often expressed in terms of a combination of the consequences of an event (including
changes in circumstances) and the associated "likelihood" (ISO Guide 73:2009, 3.6.1.1) of occurrence.
Note 5 to entry: Uncertainty is the state, even partial, of deficiency of information related to, understanding or
knowledge of an event, its consequence, or likelihood.
[SOURCE: ISO 55000:2014, 3.1.21]
3.11
stakeholder
person or organization that can affect, be affected by, or perceive themselves to be affected
by a decision or activity
Note 1 to entry: A “stakeholder” can also be referred to as an “interested party”.
[SOURCE: ISO 55000:2014, 3.1.22]

– 10 – IEC TS 62775:2016 © IEC 2016
3.12
strategic asset management plan
SAMP
documented information that specifies how organizational objectives are to be converted into
asset management objectives, the approach for developing asset management plans and the
role of the AMS in supporting achievement of the asset management objectives
Note 1 to entry: A strategic asset management plan is derived from the organizational plan.
Note 2 to entry: A strategic asset management plan may be contained in, or may be a subsidiary plan of, the
organizational plan.
[SOURCE: ISO 55000:2014, 3.3.2]
4 Management systems environment
4.1 Overview
There are many standards, which can be implemented to successfully manage organizational
functions. These range from high-level management system standards to detailed technical
and financial standards for the implementation of particular tasks.
The ISO 5500x suite of management system standards requires the integration of technical
and financial decision making and reporting, however they explicitly exclude specific technical
or financial process information, other than what might be generally referenced in a
bibliography. Similarly, IEC dependability standards rarely include reference to the needs of
management systems outside the dependability management function, nor include reference
to relevant financial standards and related requirements.
Additionally, the IFRS suites of standards make no reference to the needs of management
systems nor do they include reference to relevant technical processes and requirements.
The role of each independent set of standards are summarized in the following list:
• ISO 5500x asset management suite specifies the requirements for the establishment,
implementation, maintenance and improvement of an AMS;
• ISO/IEC/IEEE 15288 provides a tool that can be used to manage technical and financial
processes;
• IEC dependability standards describe technical processes and activities, and how to tailor
them for use within the AMS;
• IFRS suite of financial standards describe the financial processes that can be used within
the AMS.
NOTE 1 For purposes of clarity and use within this Technical Specification, a “system” (see ISO/IEC/IEEE 15288)
is considered to be equivalent to an “asset” (see ISO 55000), “asset system” (see ISO 55000) and an “item” (see
IEC 60050-192) – that is, the terms are equivalent.
NOTE 2 For describing processes this Technical Specification uses the hierarchical terms of processes, activities,
tasks and notes as described in ISO/IEC TR 24774.
4.2 Benefits to asset management from integrating financial and technical processes
The benefits that result from the integration of technical and financial standards are likely to
be significant. Specifically these may include
• greater understanding of both technical and financial systems and the relationship
between them,
• improved asset management delivery through integration with dependability management,
• reduction in complex and critical system failures and their consequences, and

• systems that are more efficient, cost effective and dependable.
4.3 ISO 5500x suite – Asset management
The ISO 5500x asset management suite of standards defines the principles of asset
management and documents the requirements for a supporting management system for
managing assets – the AMS.
ISO 55000 documents the principles of asset management to be implemented by the AMS. It
also provides a common set of terms that can be used to describe the
• management of assets,
• relevant elements of an AMS, and
• elements of the technical and financial processes of that AMS.
ISO 55001 specifies requirements for the design, implementation, operation and improvement
of specific asset management plans to meet asset management objectives. The
implementation and continual improvement of those plans deliver the intended organizational
outputs and outcomes provided through the use of assets. The standard also specifies
requirements for the design, implementation, operation and improvement of the AMS itself.
Asset management objectives provide the link between the organizational objectives and
asset management. The AMS transforms the organizational objectives into realizable asset
management objectives.
Asset management objectives are tailored to suit each organization’s needs. Some typical
organizational outcome measures that may be addressed by asset management objectives
include the following:
• the desired balance of cost, risk and performance;
• total cost of ownership;
• market share and share price;
• return on investment;
• return on asset value (both in terms of the balance sheet value and the value to the
business);
• unit cost of product or service;
• asset and asset system availability, reliability, maintainability, and supportability.
4.4 Systems engineering
4.4.1 Overview
Systems engineering applies a multidisciplinary approach to achieve a balanced solution to
agreed stakeholder needs, throughout the life cycle of a system.
ISO/IEC/IEEE 15288 provides a combined technical and business approach to managing
technical processes. It establishes a common framework for describing the life cycle of
systems and defines the processes needed for engineering management over the life of a
system from the concept of ideas through to the retirement of a system. It also describes the
processes for acquiring and sustaining systems and helps to improve communication and
cooperation among the parties that create, utilize and manage modern systems.
4.4.2 Characteristics of a system
The following are key points regarding the characteristics of a system in the systems
engineering environment:
– 12 – IEC TS 62775:2016 © IEC 2016
• system boundaries and stakeholder needs are defined;
• there is a hierarchical or other relationship between system elements;
• a system comprises an integrated, defined set of subordinate system elements;
• an entity at any level in the system-of-interest can be viewed as a system;
• characteristic properties at a system’s boundary arise from the interactions among system
elements;
• humans can be viewed both as users external to a system and as system elements (i.e.
operators) within a system;
• a system can be viewed in isolation as an entity, i.e. a product, or as a collection of
functions capable of interacting with its surrounding environment, i.e. a set of services.
4.4.3 Application of ISO/IEC/IEEE 15288
ISO/IEC/IEEE 15288 describes
• the life cycle processes of an engineering management system, and
• the life cycle processes needed to support assets.
The standard provides requirements for a number of processes and activities that can be
applied throughout the life cycle. Not all processes and activities apply to all organizations
and all projects. Organizations select those that are relevant depending on the context,
organizational objectives and stakeholder needs and attitude to risk.
ISO/IEC/IEEE 15288 does not prescribe a specific life cycle model but proposes that the user
should map the processes, activities and tasks described in the standard into a life cycle
model that suits their context.
The role of ISO/IEC/IEEE 15288 is to
• provide a benchmark of what needs to be done and why, when defining an organization's
poli
...