Description
Fixed assets register is a systematic and precise recording of information concerning the tangible assets of a company or institution. Fixed assets are durable assets used by a company in its operational activities and are not intended for sale in normal commercial transactions. Examples include real estate, machinery, vehicles, computer equipment, and other assets with a useful life exceeding one year.
The fixed assets register includes information such as:
Identification Data: Information allowing the unique identification of a specific fixed asset, such as inventory number, name, model, serial number, etc.
Acquisition Date: The date when the fixed asset was purchased or put into use.
Acquisition Costs: The initial value, encompassing not only the purchase cost but also associated costs like delivery or installation.
Estimated Useful Life: The projected period during which the fixed asset will be utilized by the company before being deemed obsolete.
Depreciation: The process by which the value of a fixed asset is gradually reduced due to wear and tear or aging. The register contains information about calculated depreciation and any changes over time.
Technical Conditions and Possible Repairs: Information about the current technical condition of the fixed asset, as well as any repairs or upgrades.
Accounting of fixed assets
The fixed assets register is essential both for accounting and financial reporting requirements and for managing the company’s assets. It enables the tracking of the history of individual assets, monitoring their technical condition, and accurately calculating and recording depreciation.