Fixed Asset Accounting

⚠️ **Finance warning / Avertissement finance** : informational only, not investment advice. The fixed asset register feeds depreciation, impairment and disposal results directly into the statements: capitalizing an expense inflates assets and profit, a missed impairment overstates both, there is a real risk of loss in any reporting decision taken from a dirty register, and no output here is a promise of return. Curated by Skill Harbor: the fixed asset accounting skill of GAJETOso/financeskills. Use it for property, plant and equipment and intangibles across the whole life cycle: acquisitions, self-construction in progress, subsequent expenditure, disposals and retirements, impairment indicators, and plain register maintenance. The capitalization decision is spelled out line by line: capitalize the purchase price plus directly attributable costs to bring the asset to working condition (delivery, installation, testing, professional fees, irrecoverable taxes) plus the initial restoration estimate and borrowing costs on qualifying assets, and expense training, relocation, administrative overhead, abnormal waste and repairs; subsequent expenditure is capitalized only when it enhances future benefits beyond the original standard. Depreciation covers the straight-line, reducing balance and units of production methods, starts when the asset is available for use rather than when it is used, stops at derecognition or held for sale classification, and applies componentization, depreciating significant parts separately (aircraft engines against the frame, plant turnarounds, a building roof, lifts and shell), with the annual review of life, residual value and method treated as a change in estimate, prospective, never restated. Impairment under IAS 36 starts from indicators, external and internal, and tests the carrying amount against the recoverable amount, the higher of fair value less costs of disposal and value in use, at cash generating unit level when there are no standalone cash flows, with IFRS reversals allowed except on goodwill. Disposals derecognize cost and accumulated depreciation together, gain or loss being proceeds minus carrying amount, and held for sale assets stop depreciating and are measured at the lower of carrying amount and fair value less costs to sell. The deliverable is a fixed asset memo or schedule: the conclusion with its standard reference, the computation, the full journal entries, and the register impact, anchored on a rollforward (opening plus additions minus disposals minus depreciation, plus or minus impairment and transfers, equals closing) that must tie to the general ledger control accounts, with construction in progress aging reviewed for stalled projects. From the GAJETOso/financeskills repository (MIT). Honest caveats: register figures land in official financial statements, so have the capitalization calls and any impairment conclusion checked by a qualified professional before any official use; the policy inputs (capitalization threshold, useful life table by class, residual conventions, componentization policy) are yours to supply and to verify, and the shipped calculate.py script should run the schedules instead of mental arithmetic. Skill Harbor never reviews the code, review it yourself before use.