Fixed asset register

What it means

A fixed asset register is a consolidated list of all the company's tangible and intangible fixed assets. For each item it shows the inventory number, acquisition cost, date put into use, depreciation group, accumulated depreciation and net book value.

The register brings individual fixed asset cards together into one overview. While a card records the full history of a specific item, from purchase through improvements to disposal, the register gives a quick view of all assets, their value and how depreciation is developing.

It is kept by companies using double-entry or single-entry bookkeeping and by sole traders who claim actual expenses. The law does not prescribe an exact layout, but the records must show the state and movement of assets and allow accounting and tax depreciation to be verified.

How it works in practice

A new asset is entered in the register on the date it is put into use, not the purchase date. Depreciation starts from that date according to the depreciation plan, which sets the method, period and rates of accounting and tax depreciation.

The register is the basis for stocktaking. During the physical count, the team checks whether assets listed in the register actually exist, where they are and in what condition. Missing or unusable items are disposed of and their net book value is expensed.

Accounting software keeps the register automatically from the asset cards and generates depreciation from it each year. Before the year-end close, check that total acquisition cost and accumulated depreciation in the register agree with the balances on the fixed asset accounts in the general ledger.

What to watch out for

A common mistake is leaving long-disposed or sold assets in the register. The company then keeps depreciating something that no longer exists or reports assets it does not have. On sale, scrapping or theft, a disposal document should be prepared and the register updated straight away.

Watch the boundary between fixed and low-value assets and the treatment of capital improvements. Upgrade costs above the statutory threshold increase the input price of the existing item in the register and should not be expensed in one go.