In the United Arab Emirates, fixed assets are among the most poorly managed corporate assets. Many businesses make the error of neglecting to keep clear records of their assets, making it difficult for regulators to assess the business and appropriately balance the fixed asset register. The International Financial Reporting Standards (IFRS), which governs firm assets, including fixed assets, in the UAE, are set by the International Financial Reporting Standards (IFRS).
Assets that cannot be moved
The UAE has strict accounting regulations. Accounting agencies in the UAE must follow certain guidelines to ensure appropriate asset management. Here are a few examples:
Fixed asset records include information on their purchase, maintenance, and disposal.
A fixed assets manager’s job is to keep track of a fixed asset’s acquisition, maintenance, and disposal. This comprises everything from the initial planning and budgeting to the final disposition of the asset. As a result, the Fixed Asset Manager should examine the fixed asset’s worth on a regular basis to make it easier to calculate its current value in the event that it needs to be sold soon.
Reasons to Outsource Accounting-Related Tasks are something you should be aware of.
Physical verification is carried out on a regular basis.
Many businesses in the United Arab Emirates lose track of their fixed assets because no one notices the old ones once the new ones arrive. While it may not have a direct impact on your firm’s operations or output, if your assets continue to vanish, your organisation will suffer losses. There have been instances where goods have been misplaced in an office and have gone unnoticed until it is too late. A fixed asset manager should be able to maintain track of all fixed assets and avoid loss by undertaking an occasional physical verification.
Examine any obsolete or inactive fixed assets.
When a corporation buys new computers, the old ones are usually stored in a store and deteriorate. Monitoring and managing such corporate assets should be the responsibility of a good fixed asset manager. Although most no longer in use, fixed assets are intended to be disposed of or donated, fixed asset standards require that these assets be documented in some form so that they may be tracked in some way. The worst thing that can happen to assets that aren’t being used is for them to vanish completely.
Putting a stop on the movement of certain assets
Some permanent corporate assets remain with the company indefinitely, possibly because they are bespoke equipment developed for a specific function and so cannot be disposed of. However, there comes a point where these assets are no longer valuable and are mistreated as a result.
Employees have gotten their hands on firm property without following any clear protocols, which is bad for business. The company asset should be transferred on to the employee (who is now its custodian) and their information should be entered in the company records, according to proper processes. Fixed assets may be fitted with tracking devices to prevent them from being unlawfully disposed of or moved outside of a defined area.
Fixed asset registration services provide a number of advantages.
Reduced losses due to theft, fraud, or conspiracy is one of the key reasons fixed asset management services are vital. Furthermore, because fixed assets are known to deteriorate over time, it is ideal for keeping track of an asset’s worth.
Fixed asset monitoring can also be used to determine whether an asset requires replacement or repair. As a result, it’s safe to conclude that a fixed asset registrar can assist you in keeping your assets in good shape. All information is recorded for accountability in the case of any repair or maintenance costs.
We can assist you in managing your fixed assets while adhering to the IRFS requirements, as we have decades of experience. Our professionals will gladly manage your fixed assets so that there are no gaps in determining your company’s genuine value.
Please contact us right away if you have any questions about audits or to schedule an initial consultation.
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