Wednesday, December 9, 2009

(46)-THE FIXED ASSET REGISTER

The Fixed Asset Register

Nearly all organization keeps fixed assets register. This is a listing of all fixed assets owned by the organization, broken down perhaps by department, location or asset type.

A fixed assets register is maintained primarily for internal purposes. It shows organizations investment in capital equipment. A fixed asset register is also part of the internal control system. Fixed assets registers are sometimes called real accounts.

Data kept in a fixed assets register
  • The internal reference number for each physical identification purpose
  • Manufactures serial number for maintain purposes
  • Description of asset
  • Location of asset
  • Department which owns asset
  • Purchase date for calculation of depreciation
  • Cost
  • Depreciation method and estimated useful life for calculation of depreciation
  • Net book value or written down value
  • Purchase of an asset
  • Sale of an asset
  • Loss or destruction of an asset
  • Transfer of an assets between departments
  • Reason of estimated useful life of an asset
  • Scrapping of an asset
  • Revaluation of an asset

Outputs from a fixed assets register

  • Reconciliations of net book value to the nominal ledger
  • Depreciation charges posted to the nominal ledger
  • Physical verification for audit purposes

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