Fixed Asset Policy & Procedures
The following are the necessary requirements & conditions with regards to every aspect of fixed assets for WTSC.
It is mandatory that you obligated to act in accordance with followings conditions whenever you are engaged in management of company’s fixed assets
Definition of Fix Asset,
Fixed assets, also known as Property, Plant and Equipment, are tangible assets held by an entity for the production or supply of goods and services, for rentals to others, or for administrative purposes.
· These assets are expected to be used for more than one accounting period.
· Examples of common types of fixed assets include buildings, land, furniture and fixtures, machines and vehicles. The term ‘Fixed Asset’ are generally used to describe tangible fixed assets.
· This means that they have a physical substance unlike intangible assets which have no physical existence such as copyright and trademarks.
· Fixed assets are not held for resale but for the production, supply, rental or administrative purposes.
· Economic benefits from fixed assets are therefore derived in the long term.
Purchase of Fixed Asset,
· Whenever you are in the process of procuring and acquiring fixed assets, the first and foremost step you are required to conduct is throughout examination to company existing inventories, check whether the certain assets are already in stock or not.
· Once you are assured and determined to purchase, you must appeal for my approval via the mail-subject of “WTSC Fixed Assets Report & Approval”
Transfer of Fixed Assets,
· When you are insisted on transferal & relocation of the fixed assets from one specific location to another (The conveyance between the departments)/ from one particular person to another (handover of authority for the certain fixed assets from person to person), you are required to utilize the “Fixed Asset Transferal Form” to fill out the necessary requirements to be to satisfied & most importantly obtained my approval before the actual transferal takes place.
· The Fixed Asset must be audited and recorded accordingly
The Usage of Fixed Assets,
· Prior to the actual utilization and handling of the fixed assets, you must obtain the genuine and rightful approval/authorization from the higher management (Admin)
· Second most crucial requirements to be satisfied is to acknowledge the monetary value of the assets that are going be under your supervision and establish proper undertaking via usage contract duly signed.
Write-off / Disposal of fixed Asset,
· The disposal of fixed assets can only took place once there are genuine approvals from both MD & Audit