Fixed Assets Management: Standard Operating Procedures

INDEX

Purpose and Scope
Fixed Assets Budget Procedure
Acquisition Process of Capital Assets
Accounting Treatment
Depreciation
Sale and Discard of Fixed Asset
Revaluation of an Asset
Impairment of an Asset
Fixed Assets Tagging and Coding Process
Fixed Assets Register (FAR)
Contents of Fixed Assets Register
Fixed Assets Register (FAR) Alteration
Physical Verification
Physical Verification Process
Differences in FAR and Physical Verification
Accounting Standards related to Fixed Assets
Companies (Auditor’s Report) Order (CARO), 2003
Activity Wise Responsibility Chart

Purpose

• This Policy document establishes policy & procedures for accounting of Fixed Assets as per relevant Accounting Standards.
• It standardizes the procurement of Fixed Assets in accordance with the Capital Purchase Budget.
• It emphasizes on the identification of Fixed Assets and its recording in Fixed Assets Register & its periodical physical verification.

Scope

1. This policy document will apply to the assets managed by the company at all its units.
2. It would also emphasize on the additions and deletions made to the fixed assets.
3. It also  focuses on the proper documentation of these asset

Fixed Assets Budget Procedure

Acquisition Process of Capital Assets

Accounting Treatment 

 

Also Read

Account Types or Group of Accounts  

 

Depreciation

 

Also Read 

Depreciation in Income tax  

 

Sale and Discard of Fixed Asset 

Revaluation of an Asset

Impairment of an Asset 

Fixed Assets Tagging and Coding Process

Fixed Assets Register (FAR) 

Contents of Fixed Assets Register

Fixed Assets Register (FAR) Alteration

Physical Verification

Physical Verification Process

Differences in FAR and Physical Verification 

Accounting Standards related to Fixed Assets

Companies (Auditor’s Report) Order (CARO), 2003

Activity Wise Responsibility Chart

Prepared by: Harshit Jain

Posted by Accounting & Taxation at 2:13 AM

Labels: Accounting, CA, ICAI