Fixed asset is also popular by the name of non-current asset or related with property, plant and equipment. Fixed asset is related with our property but it cannot be converted to cash easily like the current assets such as cash or liquid assets such as bank accounts.
It is necessary to show the details about your
fixed asset report before the tax authorities. Now it has become essential to prepare your asset report.
You have to consider some important point before preparing the
asset report. The fixed asset report is divided into two parts. In the first part, all the details about the asset are given. This detail includes the information about your account as well as descriptive information about each and every asset. You will also have to attach information about the transaction of the report of the relevant fiscal year. It should be printed in chronological order. Then you should follow some of these transactions which are essential.
Additions- here the entry of the asset is made.
Adjustment- you have to adjust the cost of your asset either manually or by adding new invoices.
Reinstatement-the asset should be reinstated.
Retirement- the asset is partially or fully retired.
Revaluation-the asset is revalued
In the second section, there is detail information about assets which were retired during the same period. It also includes the date of the retirement, cost of the asset at the time of the retirement, retired depreciation reserve amounts and retired net book value.
You should follow some of the important parameters of the report. They are:
* Output Format-select the format for the output report.
* Retirement Section Format- enter the format which is required for the retirement section.
* Book- enter the depreciation book for which you are running the report.
* From period-you should enter the latest accounting period for which the report is required.
* To period- you should enter the latest accounting period for which you want the report.
* Major category-enter the major category segment value for which report is required.
* Minor category-enter the minor category segment value for which report is required.
* Column headings-you should prepare detail column headings.
