Fixed Asset Register
In India, it is crucial for Companies to manage Fixed Asset Register’s consists of certain mandatory information. Often, Companies which are multi-location and working on legacy work platforms are required to incorporate this Register into the new ERP platform to which they are shifted. The challenge then is to provide reconciliation with the Books of Accounts, supported by tagging of all Fixed Assets and its proper recording. Further due to following reason Fixed Assests register are needed in the orgnisation.
- Corporate governance requirements (SOX, GAAP, IFRS, CLAUSE 49, CORPORATE GOVERNANCE etc).
- Inaccurate depreciation calculations.
- Lack of an audit trail and overall security.
- Inability to link ‘parent/child’ assets or conduct asset splits, batch disposals, etc.
- Access to multi-currency, multi-lingual or multi-book capabilities.
- Unable to meet historical reporting and forecasting requirements.
- Wasted time on tedious tasks such as data entry.
- Lack of confidence in data integrity.
A fixed asset register is an accounting tool used to store and regulate an organization’s list of fixed assets (e.g. computer and office equipment, vehicles, land, buildings, etc.), which typically consists of items held for the purpose of production of goods or performing services, not used for the purpose of sale. Quite simple, a fixed asset register is a detailed list of fixed assets.
In the absence of an updated Fixed Assets Register, it is tough for any company to keep check over the FA. If FA Register is not updated frequently for the addition and deletion during the year, it alert about the weak internal control over the FA’s and does not present the true and fair picture of FA in the Balance Sheet. Further, it may result into reporting by Statutory or Internal Auditor in their report.
Fixed asset management is an accounting process used to track fixed assets for the need of financial accounting (depreciation). Many companies also elect to track the whereabouts, quantity, condition and maintenance records relating to fixed assets for tax and insurance purposes.
From a purely operational standpoint, having a correct asset register that shows location, condition and the responsible contact can help to ensure that assets are available and usable when needed. But how a business uses its assets also has multiple effects on the entity’s finances, through the very tangible costs of heightened insurance premiums, property taxes and unused depreciation. These areas cannot be effectively addressed without a specialist fixed asset management solution.
Organizations that are using inconvenient spreadsheets to manage an ever-growing asset register constantly struggle to address a variety of issues surrounding the accountability and traceability of their asset base.
What VJM & Associates Offers
VJM & Associates provides total Solutions under one roof to its clients in relation to fixed asset management. We provide following services in this regard:
- Updation of existing FA Register and review of capitalization as per the provisions of AS-10 of ICAI.
- Asset Verification and Tagging Services
- Preparation of FA Register, regular updation on half yearly basis and review of capitalization as per the provisions of AS-10 of ICAI.
- Reconciliation of FA Register with the physical verification results.
- Physical verification of FA (only if FA registers is not being maintained by us).
- Compilation of discarded and/or obsolete items list
- Fixed Asset Inventory and Reconciliation Services – FAIR
- Compliance Repository Maintenance
- Fixed Assets Audits
- Depreciation Calculation and Accounting.