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Fixed Asset Management

Fixed Assets are the investment made by a Company in a tangible form, which is used for its operations to generate revenue. In manufacturing companies, fixed assets like machinery, plant, and equipment can be considered as the backbone of the company.

The effective and optimum utilization of assets steers a company to success. Fixed assets, as the name suggests, are fixed or permanent investment of a company and is expected to be in use for more than a year. Replacements, maintenance, and/or additions are imperative for maintaining the assets for the long term. Fixed assets, being of high value, call for proper internal controls to be in place to ensure that the assets are maintained and used in the best possible way.

In midst of all the general business operations, it would be difficult for the management to monitor the maintenance of assets, thus resulting in a huge loss of investment through major repairs / frequent replacements. The following controls will have to be kept in place to ensure that there is no loss on account of assets:

* Maintain asset registers detailing the description, quantity, location, and depreciation rate
* Physical verification of assets at regular intervals 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.

IAAS provide following services with respect to fixed asset management in UAE:

*Support in maintenance of Fixed Asset Register
*Review of Fixed Asset Register maintained by the Client
*Training the staft on the process for raising indent
*Supervising the accounting of Fixed Assets
*Accounting of Revalued Assets
*Proper classincation of Capital work-in-progress
*Asset lagging
*Physical Verification