for example for property, plant and equipment; confirming the existence, location and condition of the asset. Knowing what assets you have, where they are located, when they were purchased, if they are still in use, etc. is critical to any organization.

All private and public entities are required to conduct an annual physical count of all fixed assets to verify actual assets in hand and value and ensure the accuracy of related financial records.

Objectives of Asset verification

Once the Fixed Assets Register has been prepared, there is need to continuously update with additions and disposals (maintaining a separate Disposal listing), the assets must be depreciated on an annual basis.

More importantly there is need to estimate the remaining useful lives and residual values of the assets on an annual basis at the bare minimal. The fixed asset register shall be maintained in the format determined by the entity, which format shall comply with the requirements of any accounting requirements, which may be prescribed.

Assets can move locations, get reassigned to other people, get replaced, etc. Management wants reports about asset allocation, usage and service history.

Accounting needs accurate data for tracking inventory and calculating depreciation. Knowing what assets you have, where they are located, when they were purchased, if they are still in use, etc. is critical to any organization.