Hi All, Please can any one shared what is Fixed Assets Reconciliation process, who its works. Regards, Srinivasa Murthy.
From United States, Stamford
From United States, Stamford
Dear Mr. Srinivas Murthy,
When a Company is incorporated, the Company will purchase fixed assets and it will calculate depreciation as per 1. Companies Act, 1956 and 2.Income Tax Act 1961.
Hence order to keep a record of fixed assets,a Register is maintained, which is called - "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 Companies Act and Income Tax Act, where, using one of these methods, the asset would have already nullified in the Books of Account and need to reconcile.
Hope i cleared your doubt.
Best Regards
Prasanna
From India, Bangalore
When a Company is incorporated, the Company will purchase fixed assets and it will calculate depreciation as per 1. Companies Act, 1956 and 2.Income Tax Act 1961.
Hence order to keep a record of fixed assets,a Register is maintained, which is called - "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 Companies Act and Income Tax Act, where, using one of these methods, the asset would have already nullified in the Books of Account and need to reconcile.
Hope i cleared your doubt.
Best Regards
Prasanna
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Fixed Assets Register Format OK.xls