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Fixed assets verification & coding

17 May 2018

Dear All,

I got one assignment from a construction company for fixed assets verification and coding. The company (Value of assets is more than USD 95 million) is doing it for first time after 6 year of incorporation. Am also have not that experience to do it. My big concern is on there are lots of assets damaged, disposed or retired how to identify while physical audit. coding also to be done for all assets.

Need some expert advise.

Thanks in advance

Regards,

Basudev

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2 Replies

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 17 May 2018

1st you have to maintain asset register with all specified fields like category of assets, gross block, depreciation, net block, location of the asset, descripttion, name of the responsible person, asset code etc.

2nd, now u can start the PV with register and put remarks against each assets like- Found and marked, Identified, Not in use, scrapped etc.

After that prepare a report and conclude.