Fixed Asset Verification Services

STPL’s valuers have a long track record of partnering with clients in delivering fixed asset register verification and tagging services. These include:

  • Asset tagging and Barcode Labeling
  • Asset verification and reconciliation of fixed asset register records
  • Data cleansing
  • Determination of “ghost assets”
We undertake verification and reconciliations of your fixed asset register to:
  •   ensure compliance with accounting standards IAS 16 and AASB116 Property, Plant and Equipment
  •   avoid the “junk-in junk-out” scenario which may damage your business’ profitability through excessive
  •   one-off or  frequent asset write-downs
  •   provide a robust and independent Audit process
  •   ensure greater accuracy in activity based accounting processes (cost centre allocations etc)
  •   free up your internal resources
  •   allocate  impairment testing results accurately

 

Service Descriptions

 

Barcode Labeling of Assets
Barcode labels for assets and property are encoded with unique identifiers, and in fact, many compare asset labels to car license plates. Asset labels and tags are used to keep track of all your valuable assets and property―from office furniture to equipment, tools, computers, fixtures, and much more. STPL provides various types of barcode stickers from normal paper based to water proof vinyl stickers.
Asset Verification & Reconcilation
Verification template will be prepared and same will be used to submit the final data. This need to be approved by the customer before use. Offices visiting schedule planning. Customer has to inform all the offices about scheduled visit of STPL employee. Final Plan approval from customer.
Fixed Asset Register Cleansing
Existing fixed asset register (FAR) will be analyzed. This will form a baseline for the asset verification exercise. If any FAR exist then asset will be verified in 3 categories “Asset on Register and on site”, “Asset on register and not on site”, “Asset not on register and on site”.
Asset Verification and Tagging
STPL employee will visit the respective office and will report to customer nominated SPOC. SPOC will guide the verification professional to the assets and he will witness the verification exercise. STPL employee will verify the physical existence of asset, current condition of the assets, any missing assets (only in case if any current asset register exist) or any newly purchased asset (only in case if any current asset register exist). Once the verification is done then the asset will be tagged with a barcode/Serial number tag. The asset details along with the barcode/serial number will be captured in a excel sheet.
Reporting & BI
All the reports will be merged to form one consolidated report. Asset category wise report will be prepared. All reports will be submitted to the audit team.

Reasons to Consider

Organizations can’t afford to have a physical asset register with error or incomplete details which will lead to a poor strategic decision and unwanted expenditure.

It is very important to consider some important facts when doing an Asset verification exercise.

  • Asset Identification and classification
  • Asset quality and condition Identification criteria
  • Asset valuation criteria
  • Asset Geographical Location
  • Asset Tagging Plan
All the assets spread through a geographical location

may not be worthy to be assessed. It is important to identify the available assets are in what condition and yield what value when utilized or it may needed to be disposed off. Asset tagging plays a very crucial role in whole exercise by giving every asset a unique identity for various important purposes.

Some benefits of Asset Tagging:

  • Easy tracking of assets.
  • Easy to schedule maintenance, service and replacement of assets
  • Easy Inventory Management.
  • Transparency in owned asset details.
  • Better utilization of high value assets.
  • Better asset security and security planning.
  • Better compliance to insurance or any other compliance agency.
  • Better asset cost planning and depreciation scheduling
  • Reconciliation to remove any duplicate.
Assets are of two types
  • Movable Assets: Like vehicles, Assets which can be easily moved etc.
  • Immovable Assets: Building, land, Assets which can’t be moved at all or attracts huge expenditure if needed to be moved.

Further this can be classified in various other categories depending upon the Asset usability type.

For Example:

  • Air-condition
  • Building
  • Computer hardware
  • Furniture & fittings
  • Land
  • Leasehold improvement
  • Motor vehicle
  • Other transportation equipment
  • Plant & equipments
  • Strong room and safe
Physical Asset Verification and Tagging activity includes following
  • Complete Asset Verification Plan
  • Geographical Location coverage Plan
  • Physical Asset identification and Barcode/RFID/Serial tagging.
  • Recording Important Information as activity outcome.
    • Barcode/RFID/Serial number (Unique)
    • Asset Description
    • Asset Serial numbers
    • Asset cost (Purchase value, Net Value, Current Value)
    • Asset Location
    • Asset Transfer details
    • Asset Category
    • Asset Departments/Owner
    • Cost Centre
    • Asset Reconciliation with existing record.
Case Studies
Quick IFRS/GAAP Compliance with FAR, Read Case Study

STPL Wins Fixed Asset Verification Contract, Read News Item

Fixed Asset Verification and IFRS Compliance within 60 Days for Africa’s Largest retail Bank. [wpdm_file id=3]

FAR Reconciliation Consulting

Consult STPL Consultants to understand how we can assist your organization to Manage and Record Fixed Assets. In addition, if required, STPL consultants can provide you a detailed break up on why outsourcing this exercise will in fact reduce your overheads. Contact us Today.

Resource Center
Download Free Fixed Asset Register Software to maintain your Fixed Asset Records. [wpdm_file id=4]
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