Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @
Review date: 2025-08-20
Next review date:2026-08-20
This policy applies to all fixed assets that meet the capitalization criteria (as defined in Policy FIN-005) with the exception of land and buildings.
To establish a system that ensures every individual fixed asset is assigned a unique identifier, thereby maintaining proper accountability, facilitating physical verification, and ensuring assets are accurately tracked throughout their useful life.
This policy applies to all fixed assets that meet the capitalization criteria (as defined in Policy FIN-005) with the exception of land and buildings.
Each capital asset must be assigned a unique identification number and affixed with a corresponding physical tag label (asset tag).
This unique tag number must be permanently associated with the asset's record in the Fixed Assets Register.
The unique identification number must be composed of four distinct, sequential components to ensure structured recording:
Fiscal Year of Acquisition: Four digits (e.g., 2025).
Asset Type: One character letter indicating the category (e.g., V for Vehicle, C for Computer).
Location: The room number or specific operating location of the asset.
Sequential Number: A sequential number assigned to the asset within that location/type combination.
The Administrative Department is solely responsible for the physical preparation, adherence (tagging), and initial recording of the asset tag details.
Administrative Department: Responsible for designing, printing, affixing, and initially recording the unique physical asset tags and maintaining the list of used identification codes.
Financial Department (Accountant): Responsible for periodic verification and reconciliation of the physical asset tags against the Fixed Assets Register.
Chief Financial Officer (CFO): Responsible for reviewing and acting upon variance reports submitted by the Accountant following physical counts.
This policy will be reviewed and updated annually, or sooner if there are significant changes to the company's fixed asset management systems or departmental structures.