When we come to think about fixed assets’ control and procedures, we obviously can see that they need another set of standard and rule—a more certain guidelines of what is allowed and what isn’t—in term with purchase proposal, valuation, record keeping and impairment (or revaluation) of fixed assets, as a complement. They need fixed asset policies. Without any clear policies, both fixed asset control and procedures would not be able to be performed effectively.
- Who conduct formal review and approve all the fixed asset treatments (purchasing, valuing, recording and impairing)
- What to do on purchased of fixed assets (e.g. compare the proposal with the actual transactions)
- What to do on the fixed assets recording process of the fixed assets
- What to do on the fixed assets depreciation
- What to do on the fixed asset impairment (revaluation) process
- What will happen if any fixed asset are stolen, who responsible for that.
- What happen if any fixed asset is relocated, who responsible for that.
Many of those points on the fixed asset policies are set depends on each fixed asset group, value of the asset and its economical life time.