In order to reconcile capitalized fixed assets, Verasset must first conduct a physical inventory count. Prior to beginning the physical verification task, we compile a list of asset types that will be included in the physical inventory.
The results from the physical count are used to verify or adjust the fixed asset register records. During this process, it is not uncommon to discover installed assets that meet capitalization thresholds yet are not represented on the fixed asset register. These are referred to as additions.
In order to adjust the register to include additions, one of two steps must be taken;
One method entails conducting a search of paperwork associated with the asset purchase in order establish when it was purchased and the installed cost.
Another method would be to appraise the asset applying a value to it such as “fair market value” (note – there are multiple ways to appraise and apply value to an asset).