A list identifying all fixed assets held or utilized by the company in the running of the business along with important information about each asset such as type, cost, age, condition, value, and depreciation information.
A fixed asset register is a schedule lists all material assets owned by the business and documents the characteristics of each asset such as its purchase date, purchase cost, estimated useful life, written-down-value, the historical maintenance performed, future maintenance required, usage metrics, utilization rates and any independent valuation appraisals.
This register is then kept up-to-date regularly to reflect any asset purchases, asset disposals or changes to asset related policies.
Having a comprehensive and up-to-date fixed asset register provides a number of benefits to your business including:
The fixed assets of the business represent an important source of value for a business to utilize while also representing a potential source of liability or costs in the future. Therefore understanding the assets of the business in detail is an important aspect of any due diligence related exercise. A fixed asset register will help to: