Fixed Asset Management

service detail

Fixed Asset Management Service in Dubai, UAE

Fixed assets are the tangible investments made by a company that are employed in its operations to produce revenue. Fixed assets, including as machinery, plant, and equipment, are often referred to as the company's "skeleton." Asset usage that is both efficient and effective leads to business success. As the name implies, fixed assets are long-term investments made by a corporation that are expected to be used for longer than a year. Asset maintenance over the long run necessitates replacements, upkeep, and/or additions. Due to their high value, fixed assets require adequate internal controls to guarantee that they are well-maintained and utilised.

The following controls listed below will have to be kept in place to ensure that there is no loss on account of assets:

  • Keep asset registers detailing the description, quantity, location, and depreciation rate
  • Physical verification of assets at periodically to ensure there is no theft/fraud associated
  • Discussion with management in case there are discrepancies with the asset list
  • Third-party Fixed Asset audit, if the discrepancies are huge.

1. Support in maintenance of Fixed Asset Register

We can help the management to maintain the fixed assets and make sure the register is up to date at the head office, all subsidiary companies, and all other locations. Location, custodian of the assets, date of purchase, item code, voucher number, cost, depreciation, depreciation charged, details of disposal (if any), assets reference number, etc. are all included in the Register at HO. Fixed asset code number, date of acquisition, cost price, transfer/disposal/sale data with a date will all be listed in the divisional registers for fixed assets.

2. Review of Fixed Asset Register maintained by the Client:

We will analyse the client's fixed asset registry and, if necessary, suggest modifications to the management. We'll make sure the Register contains all the information essential to maintain the assets properly. To the greatest extent practicable, the location specified in the register will be cross-verified to verify that the management has effective control over the assets. Our staff will physically confirm the presence of the assets listed in the Register and, to the degree feasible, note it in the register.

3. Training the staff on the process for raising indent

The team will receive a briefing on how to submit a request for a new fixed asset, including information on the types of fixed assets that already exist, the necessity for the desired purchase, and the anticipated cost of the requested purchase. The division manager will provide an analysis containing the names and addresses of suppliers, a description of the items, a price, payment terms, a credit period, and an explanation for the supplier's selection.

4. Supervising the accounting of Fixed Assets

Fixed asset accounting will be closely monitored to ensure accurate ledger generation for each asset class, depreciation computation, and accounting for asset acquisition and disposal. Depending on the type of business, there are several asset classes that could include furniture and fixtures, tools and equipment, computers/software, buildings, etc. After discussion with the management and assessment of the asset's nature, kind of use, and replacement value analysis, the depreciation rate will be decided. We will monitor the entries made by the accountant to ensure IFRS compliance.

5. Accounting of Revalued Assets

We will make sure that the qualified valuer's revalued assets are properly accounted for and allocated to the revaluation reserve. Also, we will confirm that the revised depreciation on these assets is calculated in accordance with the Standards.

6. Proper classification of Capital work-in-progress

In order to ensure that the correct value of an asset is reflected in the books, we will make sure that the capital work-in-progress is transferred to the proper asset head upon completion, that expenses are classified and distributed appropriately, and that the entire asset value is recalculated. We will double-check that the costs are directly related to the definition of fixed assets, that other costs are deducted, and that the transfer of assets from WIP occurred at the appropriate time.

7. Asset Tagging

We may help the client tag their fixed assets by giving each one a special asset barcode or RFID tag, which will update the system with information about their actual location. The tagged assets will be compared to the list of existing assets, and any discrepancies will be noted. Asset tagging will pay for itself over time because it will reduce the risk of loss or theft and leave a complete trail of all assets.

8. Physical Verification

Our experts will come to your location and undertake fixed asset verification to make sure the assets listed in the books are actually present on the company's property or in its custody. Also, we will evaluate the current control procedures, compare them to best business practises, identify any gaps, and then produce a report on adjustments that need to be made.