Fixed Assets Register and Records Policy

• Version 1.0

• Prepared by: @Lorraine Sebata

• Approved by: @

• Review date: 2025-08-20

• Next review date: 2026-08-20

1. Purpose

To establish mandatory requirements for the maintenance of a central, accurate, and up-to-date Fixed Assets Register. This register serves as the official record for all capitalized assets, supporting financial reporting, asset accountability, and statutory compliance.

2. Scope

This policy applies to all tangible assets owned by Easyterms Ltd. that meet the capitalization threshold as defined in Policy FIN-005.

3. Policy Statements

3.1. Central Register Requirement

1. The Company must maintain a computerized and consistently updated Fixed Assets Register.

2. The Register must be the single source of truth for the asset's status, financial metrics, and physical location.

3.2. Mandatory Data Fields

The Register must contain, at a minimum, the following comprehensive data fields for every fixed asset:

• Identification:

  • Identification Number (Tag Number)

  • Description of the Asset

  • Name of the Asset

• Financial Data:

  • Cost of the Asset (Historical Cost)

  • Date of Acquisition

  • Estimated Useful Life (Years)

  • Depreciation Method

  • Depreciation Rate

  • Accumulated Depreciation

  • Net Book Value (NBV)

• Physical Data:

  • Location of Use (Room Number/Department)

  • Mode of Disposal (when retired)

3.3. Responsibility and Computerization

1. Administrative Department is solely responsible for the physical maintenance, updating, and integrity of the Fixed Assets Register.

2. The entire registering process must be computerized to ensure data security, accessibility, and the ability to generate accurate reports.

4. Roles and Responsibilities

• Administrative Department: Primary responsibility for all data entry, ensuring the Register is immediately updated following acquisition, relocation, or disposal, and maintaining the accuracy of physical data (location, tag number).

• Financial Department (Accountant): Responsible for ensuring the financial integrity of the data (cost, depreciation, NBV) and periodically reconciling the Register against the General Ledger.

• Chief Financial Officer (CFO): Responsible for the final review and approval of the Register on a regular basis (e.g., quarterly) and ensuring its compliance with accounting standards.

5. Review and Revision

This policy will be reviewed and updated annually, or sooner if there is a change in the Company's accounting software, asset management system, or organizational structure.