Fixed asset review

Purpose

Reconcile the fixed-asset register to acquisition evidence, depreciation schedules, disposals, and general-ledger accounts. Surface missing tags, unsupported capitalization, stale assets, and balance differences with reproducible calculations.

Scope

Cover asset register, capitalization policy, purchase invoices, goods receipts, depreciation schedule, disposal approvals, impairment documents, and fixed-asset ledger accounts. Excluded: posting adjustments, approving capitalization, physical inspection, valuation opinion, and impairment conclusion.

Data basis

• Asset register with asset_id, description, class, in_service_date, cost, accumulated_depreciation, net_book_value, location, and status.
• Fixed-asset ledger, invoice, disposal, and depreciation tables.
• Capitalization and depreciation policies.

Result

Create a fixed-asset exception sheet and review memo with cost roll-forward, ledger reconciliation, depreciation checks, disposal status, and evidence gaps.

The workpaper keeps additions, transfers, disposals, and depreciation movements in separate columns. A reviewer must be able to trace a closing net-book-value difference to the asset register, the ledger, or a named missing source without reconstructing the calculation.

Use the same asset identifier across every table and retain the review-period cutoff on each roll-forward line.

Quality criteria

• Reconcile opening cost plus additions less disposals to closing cost.
• Recompute depreciation using supplied method, life, residual value, and convention.
• Tie material additions and disposals to source evidence.
• Flag duplicate IDs, negative NBV, missing in-service dates, and stale status.
• Cite register, invoice, schedule, policy, or ledger evidence for every finding.

Instructions

Use the capitalization threshold and depreciation convention in the supplied policy; never invent them. Keep cost, accumulated depreciation, and NBV separate. Fully depreciated assets remain active until a disposal or retirement record supports status change. Do not infer existence from an invoice alone. Preserve register-to-ledger differences as reconciliation breaks.

Adapt before use

• Add capitalization and depreciation policies.
• Map register, ledger, invoice, disposal, and schedule columns.
• Define review period and materiality threshold.
• Identify ledger accounts included in reconciliation.