Sunday, June 17, 2012

Purpose of Fixed Asset Register

What is the main accounting purpose of a fixed asset register?

it may be hard, but it is very important for an account to maintain a register of all assets that the company owns.  By properly maintaining a proper fixed asset register, it helps the company to keep track of details of each fixed asset. This ensures proper control and prevents misappropriation of a company's assets

The fixed asset register also keeps track of the correct value of assets, which allows for computation of depreciation and for tax purposes. This also might be necessary to comply with legislation governing corporations, companies, etc.

A Fixed asset register should contain  the following information to help a decision maker identify and track an asset. Look at the following examples of information to include in the asset register:

  • unique identification of asset number /tag number 
  • date of acquisition of fixed asset  
  • cost of fixed asset 
  • description and purpose for company 
  • serial number 
  • location 
  • name of manager

1 comment:

OMICS Group said...

good concept but hard to keep all all records at one place.Given examples are informative

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.