Fixed Asset Register

• By maintaining a proper Fixed Asset Register, it allows a company to keep track of details of each fixed asset, ensuring control and preventing misappropriation of assets
• It also keeps track of the correct value of assets, which allows for computation of depreciation and for tax and insurance purposes
• To comply with legislation governing corporations, companies, etc.

As we know fixed assets can comprise of movable and immovable items like plant & vehicles, land and buildings, furniture and fittings, computers and others. Therefore, the recordings of information may varies from one type of fixed asset to another.

Plant and vehicles

• Records should be maintained on each vehicle or item of plant.
• Information should include the following:
• the original cost of vehicles,
• date of purchase,
• rate of depreciation,
• insured amount,
• vehicle age,
• mileage,
• any mechanical problems experienced,
• regular check-ups,
• accidents

The information would help to assess when new vehicles need to be acquired. Papers should include those recording ownership, payment of registration fees, warrant of fitness and insurance.

Land and Buildings

• An asset register should contain all relevant information on land and buildings. This includes:
• Certificate of Title number;
• location/area/plan;
• Government valuation;
• zoning of the area where the land or buildings are located;
• market valuation;
• improvements;
• date acquired, and how acquired;
• ownership, if leased;
• present use; and
• condition.

Furniture and Fittings – It may not be necessary to individually number all desks and chairs, but records should be kept showing the total number acquired and disposed of.Computer Terminals and Microcomputers – These assets are relatively expensive and are portable, which may mean that they are a target for theft or unauthorised disposal. Prudent precautions include listing these assets by serial number and location within the organisation.