Control, compliance, and clarity over your asset base — through physical verification, accurate registers, robust governance, and full compliance with applicable accounting standards.
Fixed assets represent a significant portion of a company's investment — yet poor record-keeping, inadequate tagging, and irregular verification frequently result in weak controls, compliance vulnerabilities, and unreliable financial statements. Many organisations discover these gaps only during audits or due diligence — often at significant cost. Our Fixed Assets Management Advisory service helps businesses establish robust systems and practices to ensure their asset registers are accurate, assets are physically identifiable, and the organisation is in full control of one of its most valuable resources.
Accurate valuation of fixed assets is fundamental to the integrity of a company's balance sheet. Valuation errors — through incorrect initial capitalisation, missing componentisation, inconsistent revaluation policies, or outdated book values — can distort financial statements and create compliance risks. We review whether assets are capitalised at the correct cost (including directly attributable costs and eligible borrowing costs), support revaluation model adoption under Ind AS 16 (including OCI treatment), and assist with Purchase Price Allocation (PPA) in acquisitions under Ind AS 103.
Useful life is one of the most consequential estimates in financial reporting — it determines depreciation charges, balance sheet carrying values, and deferred tax positions. Many organisations default to Schedule II of the Companies Act 2013 without assessing whether those prescribed lives reflect their specific assets, operating conditions, and maintenance practices. We review useful life and residual value assumptions against the actual economic reality of assets, help management establish the annual review process required under Ind AS 16, and coordinate technical assessments for complex or specialised plant and equipment.
Component accounting — separately identifying, capitalising, and depreciating significant parts of an asset with different useful lives — is mandatory under Ind AS 16 and recognised under AS 10 (Revised). It remains one of the most under-implemented requirements in Indian financial reporting. We identify assets requiring componentisation, allocate costs to components, recalculate depreciation, establish correct accounting treatment for major overhauls and replacements, and update the fixed asset register and financial statement disclosures accordingly.
An asset is impaired when its carrying amount exceeds its recoverable amount — the higher of fair value less costs of disposal and value in use. Impairment testing under Ind AS 36 / AS 28 is required whenever impairment indicators are present, yet it remains widely neglected. We carry out structured impairment indicator assessments, determine recoverable amounts through fair value or discounted cash flow analysis, identify and test Cash Generating Units (CGUs), and support recognition, disclosure, and — where applicable — reversal of impairment losses in compliance with applicable standards.
Comprehensive review of the existing fixed asset register, accounting records, and any prior physical verification reports — assessing completeness of asset descriptions, classification, location mapping, valuation basis, and depreciation workings.
A structured, location-wise physical verification exercise is conducted to identify assets on the ground, match them to register entries, and flag assets that are untagged, missing, disposed but not written off, or incorrectly classified.
Technical and financial review of asset valuations, useful life estimates, residual values, and componentisation requirements — identifying gaps between current practice and requirements under Ind AS 16, Ind AS 36, Ind AS 113, and the Companies Act 2013.
Structured review for impairment indicators across the asset base, determination of recoverable amounts where required, and preparation of impairment workings, entries, and disclosures.
Detailed report of findings and recommendations, and hands-on support for corrective actions including tagging, register corrections, valuation adjustments, policy documentation, componentisation entries, and team training.
Accurate register aligned with books of accounts and applicable accounting standards.
Values reflecting economic reality under cost or revaluation model, per Ind AS 16 and Ind AS 113.
Based on assessed useful lives and residual values — not just Schedule II defaults.
Significant asset components separately identified, capitalised, and depreciated per Ind AS 16.
Documented workings, compliant disclosures, and no audit qualifications on asset values.
Reduced risk of ghost assets, pilferage, and unrecorded disposals — backed by clear SOPs.
We help you make it the latter — with systematic verification, valuation, and controls implementation.