(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