Hi All, Please can any one shared what is Fixed Assets Reconciliation process, who its works. Regards, Srinivasa Murthy.
From United States, Stamford
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From United States, Stamford
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Dear Mr. Srinivas Murthy,
When a company is incorporated, the company will purchase fixed assets and calculate depreciation as per the Companies Act, 1956, and the Income Tax Act, 1961. Therefore, to keep a record of fixed assets, a register is maintained, which is called the "Fixed Asset Register."
Fixed Asset Reconciliation is the cross-check between assets physically present and the Fixed Asset Register. Another type of reconciliation is also done in terms of depreciation calculated as per the Companies Act and Income Tax Act. In this case, using one of these methods, the asset would have already been nullified in the books of account and needs to be reconciled.
I hope I have cleared your doubt.
Best Regards,
Prasanna
From India, Bangalore
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When a company is incorporated, the company will purchase fixed assets and calculate depreciation as per the Companies Act, 1956, and the Income Tax Act, 1961. Therefore, to keep a record of fixed assets, a register is maintained, which is called the "Fixed Asset Register."
Fixed Asset Reconciliation is the cross-check between assets physically present and the Fixed Asset Register. Another type of reconciliation is also done in terms of depreciation calculated as per the Companies Act and Income Tax Act. In this case, using one of these methods, the asset would have already been nullified in the books of account and needs to be reconciled.
I hope I have cleared your doubt.
Best Regards,
Prasanna
From India, Bangalore
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