7. The Asset Register Flashcards
What is the asset register?
The asset register is a listing of all non-current assets owned and leased by the organisation, broken down by department, location or asset type, and containing non-financial information (such as chassis numbers and security codes) as well as financial information.
Why is an asset register maintained?
What does a computerised accounting system do when transactions related to non-current assets are recorded?
An asset register is maintained primarily for internal control purposes.
It shows an organisations investment in capital equipment in financial terms and allows the business to trace from its ledger accounts for non-current assets to individual assets.
In a computerised accounting system, the asset register and non-current asset ledger accounts will be updated simultaneously when transactions relating to non-current assets are recorded.
What details about each non-current asset are included in the asset register? (9)
Details about each non-current asset include the following:
1. Internal reference number (for physical identification purposes)
2. Manufacturer’s serial number (for maintenance purposes)
3. Description of asset
4. Location of asset
5. Department which uses the asset
6. Purchase / lease commencement date (for calculation of depreciation)
7. Cost, and any enhancement expenditure
8. Depreciation method and estimated useful life (for calculation of depreciation)
9. Carrying amount
