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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