Fixed Asset Management (Tagging)

Fixed Asset Management involves identifying, verifying and assessing the usability of an enterprise's assets. Without it, organisations face write-offs from "ghost assets", misstated financials, and regulator queries. KGAC's FAMS practice streamlines asset tracking, verification and reconciliation through systematic tagging and digital registration processes.

Core Components

• FA Register: Item-wise Fixed Assets Register & its tracking.
• Asset Tagging: Location-wise tagging of all assets.
• Tag Types: Identification of tag types and locations.
• FAR Reconciliation: Verification and reconciliation process.

Fixed Asset Register (FAR)

The Fixed Asset Register is a comprehensive record of all long-term assets owned or leased by any entity, envisaging the life cycle of each individual asset from its acquisition to disposal.

• Comprises Plant & Machinery, IT Assets, Infrastructure Installations and Operational Assets.
• FAR has detailed line-wise asset data with details including but not limited to location, cost, purchase date, depreciation and verification status.
• A well-maintained FAR ensures financial accuracy, regulatory compliance and complete visibility across all stakeholders.

Asset Tagging

Asset tagging eliminates the ghost assets from the FAR by aligning a digital ID for every asset.

• Tagging gives clear traceability and condition tracking through barcodes, QR codes, or RFID tags across the asset lifecycle.
• Movement and tracking become easier and traceable for location changes as well.
• Tagging helps in eliminating duplication and provides clear understanding for regulators, stakeholders & auditors.

Asset Tag Types

Different assets require different tagging solutions to match the requirements and sustainability of the tags:

• Barcode Tags: Cost-efficient and quick to deploy — perfect for offices.
• QR Code Tags: Carry rich data for easy mobile access and instant updates.
• RFID Tags: Enable remote and bulk scanning for large, high-volume environments.
• Metal / Tamper-Proof Tags: Built for durability in industrial and outdoor settings.

FAR Reconciliation

• Periodic FAR reconciliation is essential in evaluating controls and their effectiveness.
• Periodic verifications help to identify and locate assets which are damaged, shifted, lost, pilfered or end-of-life items, as well as any additional or unrecorded items.
• Regular monitoring and recording of any movements is critical for stakeholders, regulators and auditors.
• Reconciliation also helps ensure financials reflect the true and correct review, making them reflect stronger internal controls.