What is a Fixed Asset Register?
A fixed asset register is a detailed listing of fixed assets owned by an organization. This register is mostly prepared and used to keep track of the book value of the assets, predominantly for accounting and taxation purposes.
Significant resources get invested in fixed assets, be it buildings, plant and equipment, Information Technology hardware or office interiors. Examination and confirmation that the assets physically exist, have not been impaired, and still continue to perform their intended functions forms an integral part of an entity’s accounting for its assets.
Creating and maintaining a fixed asset register, and periodic physical verification of fixed assets become a critical function especially for asset-intensive entities. Failure to do this can lead to either overestimation or otherwise of the company’s assets in its balance sheet. Physical verification also becomes crucial when external auditors need some assurance that the assets included in the balance sheet do exist and an independent confirmation can assist in providing such assurance.
PKF assists its clients in creation and regular maintenance of the fixed asset register. We also undertake physical verification exercises for the existing assets, along with classifying them under various categories for an easier identification and reconciliation of their values with the balance sheet. We also provide assistance in their coding for seamless integration in accounting records.