Fixed Asset Management covers the complete lifecycle of tangible assets from acquisition to disposal. It includes maintenance of the fixed asset register, calculation of depreciation, tracking of additions and deletions, and periodic verification of asset records.
Scope of Services
Services include:
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Creation and maintenance of fixed asset register
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Capitalisation of assets in accordance with accounting standards
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Computation of depreciation under Companies Act and Income-tax Act
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Recording of additions, deletions and transfers
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Periodic review and updating of asset records
Key Processes
The process involves:
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Classification of assets into appropriate categories
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Determination of useful lives and residual values
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Reconciliation of asset register with general ledger
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Support for physical verification exercises
Compliance
Proper fixed asset records support accurate financial reporting, tax computations and audit requirements.