What's on the register should actually exist
Fixed Asset Verification Services
Physical verification and reconciliation of the fixed asset register against the accounting records — surprisingly often, what's formally recorded and what physically exists have quietly drifted apart, sometimes for years, before anyone checks.
A common, easily overlooked distortion of both balance sheet and depreciation charge
Key facts
| Common finding | Disposed or written-off assets still on the register, or unrecorded new additions |
| Typical trigger | Year-end audit, insurance renewal, or a general balance sheet cleanup exercise |
| Output | A reconciled register matching physical reality, with corrected depreciation going forward |
What this actually involves
Fixed asset registers drift for entirely mundane reasons — a piece of equipment scrapped without anyone filing a formal disposal entry, a new purchase that gets used immediately but never formally tagged and added to the register, an asset relocated between offices or sites with no corresponding update to its recorded location.
The cumulative effect of these small, individually minor gaps compounds over time into a genuinely inaccurate register — one that overstates total asset value, applies depreciation to assets no longer in service, and misses depreciation on assets that were added but never properly recorded. None of these show up as an obvious red flag until someone actually walks the floor with the register in hand.
Beyond accounting accuracy, an out-of-date fixed asset register directly affects insurance coverage — insurers price and structure coverage based on declared asset values, and a register overstating (or understating) what's actually on the premises creates a real coverage gap in either direction, discovered at exactly the wrong moment: when a claim needs to be made.
Is this actually relevant to you?
- It's been more than a year since your fixed asset register was physically verified against what actually exists
- You're renewing insurance coverage and want confidence your declared asset values are accurate
- You're preparing for a statutory audit and know fixed assets will be part of the audit scope
- You suspect disposed or relocated assets haven't been properly updated in your accounting records
Our process, step by step
Physical asset verification
On-site verification against the register, walking the actual floor or site.
Register reconciliation
Correcting disposals, additions and location discrepancies identified during verification.
Depreciation policy review
Confirming depreciation is being applied consistently and correctly going forward.
Insurance value cross-check
Flagging any material gap between the reconciled register and current insurance declared values.
Scope of work
A verified asset register supports depreciation in your IFRS financial statements, the statutory audit and, where relevant, a business valuation.
The small gaps that compound into a real discrepancy
- An asset scrapped or disposed of without a formal disposal entry, remaining on the register and continuing to accrue depreciation charges against a non-existent asset.
- New equipment purchased and put into immediate use without being tagged and formally added to the register, understating both assets and future depreciation.
- Assets relocated between offices, warehouses or sites with no corresponding update to recorded location, complicating any future verification exercise.
Related audit services in Dubai and the UAE
Statutory, internal and specialist audits by our licensed audit practice.
Related guides from our team
Practical explanations of the rules behind this service, written by our chartered accountants.
Common questions
How often should fixed assets be physically verified?+
Annually is standard practice for most businesses, more frequently for asset-heavy operations like manufacturing or logistics where the register tends to drift faster.
Does this affect our insurance coverage?+
It can — an accurate asset register is often needed to support insurance valuations and claims, so keeping it current has real value beyond accounting accuracy alone.
What happens to depreciation once discrepancies are corrected?+
Depreciation is adjusted going forward to reflect the corrected register — assets no longer present stop accruing charges, and previously unrecorded assets begin depreciating from their actual acquisition date.
Can this be done as part of our annual audit rather than separately?+
Yes, it's often coordinated to align with audit timing, though it can equally be run as a standalone exercise ahead of an insurance renewal or independent of the audit cycle.
What if we find assets that were never on the register at all?+
These are formally added at appropriate valuation, correcting both the balance sheet and future depreciation from that point forward.
Not confident your fixed asset register matches reality?
A verification exercise usually pays for itself in insurance and depreciation accuracy alone.