Our Fixed Asset Identification Inventory Impairment Policy is an essential tool designed to help organizations maintain strict control over their fixed assets. This document outlines best practices for asset identification, including the use of unique numbering and permanent tagging, as well as maintaining detailed records in specialized software. It covers the entire asset lifecycle, from acquisition and marking to transfers and disposals, assuring that every movement and change in status is accurately tracked and properly accounted for. This policy also addresses the importance of periodic physical inventory and the need to reconcile records, providing a robust framework for compliance and audit readiness.

Beyond inventory management, this tool offers guidance on assessing and recording asset impairments. It helps users recognize key indicators that may signal a reduction in asset value, such as market changes, physical damage or planned disposals. It ensures that any impairment losses are handled with proper oversight and in accordance with statutory and corporate requirements. By following this policy, organizations can safeguard their assets, enhance financial transparency and reduce the risk of loss or misstatement. 

Sample procedures include:

• All asset properties should be clearly marked as company property and uniquely numbered for accounting records and specific physical identification, unless the nature of the asset makes it impractical.
• Metal tags, or other means of permanently identifying the asset by unique number, should be affixed at the time of acquisition.
• A physical inventory of all fixed assets should be taken periodically, but not less than once every three years.
• Fixed assets should be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.