Business Case Studies & Corporate Strategy

Fixed Asset Register and AS 10 Evidence Pack

Finin2min Controllership Desk·June 2026·9 min readFIXED ASSETSValidated: 17 June 2026

Fixed assets are not just invoices. The asset file should prove capitalization, location, useful life, depreciation, physical existence and disposal approval.

For the connected rule, example or next step, see Ind AS 16 Component Accounting for Fixed Assets.

In short: A fixed asset register is not just a spreadsheet of invoices — it needs to prove capitalisation, physical existence, custodian, useful life and disposal for every asset on the books. Check first whether your company follows AS 10 (non-Ind-AS companies) or Ind AS 16 (Ind-AS-applicable companies) — Ind AS 16 additionally requires significant components of an asset with materially different useful lives to be depreciated separately, which AS 10 does not mandate in the same way.

Detailed analysis

Why this matters
AS 10 focuses on property, plant and equipment. In practice, startups often misclassify laptops, leasehold improvements, software/hardware bundles and repairs. A fixed asset register should bridge invoice, asset tag, location, custodian and depreciation.

Practical example

Example
A startup buys 60 laptops for new joiners. Finance capitalises laptops, records serial numbers, employee custodian, useful life, depreciation start date and physical verification status. Recovered laptops on exits are updated in FAR.

Evidence and control checklist

Area	What to check	Evidence to save
Capitalisation	Asset vs expense decision and threshold.	Invoice, approval and capitalization memo.
Asset master	Tag, serial number, location and custodian.	Fixed asset register and asset labels.
Depreciation	Useful life, method and start/stop date.	Depreciation working and policy.
Physical verification	Existence, condition and movement.	Verification report and exception log.
Disposal/write-off	Sale/scrap/loss and approval.	Disposal note, invoice/scrap proof and accounting entry.

For the connected rule, example or next step, see AP Accrual and Expense Cut-Off: Vendor Invoice Close Checklist.

Common mistakes

Avoid these mistakes

Capitalising without asset tag.
Expensing capital items inconsistently.
No custodian tracking for laptops.
Depreciating after disposal.
No physical verification report.

Official reference framework

Checked on 17 June 2026
Based only on official India Code, MCA and ICAI source pages listed below. Check the latest Companies Act, Schedule III, accounting standards, Ind AS/AS applicability and auditor guidance before closing or filing.

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Official sources used

This article is intentionally source-limited to official India Code, MCA and ICAI material. Source validation date: 17 June 2026. Verify final positions with latest Companies Act, Schedule III, accounting standards, Ind AS/AS applicability and auditor guidance before closing or filing.

FAQs

What is a fixed asset register? ▾

A live record of every capitalised asset the company owns, showing cost, capitalisation date, location, custodian, useful life, accumulated depreciation and current status — reconciled to the general ledger, not maintained separately from it.

Why is AS 10 relevant, and does it always apply? ▾

AS 10 governs recognition, measurement and depreciation of property, plant and equipment for companies not required to follow Ind AS. Companies that must follow Ind AS use Ind AS 16 instead, which additionally requires component accounting — depreciating significant parts of an asset with materially different useful lives separately.

Should laptops and other portable assets be tagged? ▾

Yes — portable, high-value assets are the most likely to go missing, be misplaced across offices, or not get returned on employee exit, so an asset tag and a named custodian are the minimum control needed to trace them at physical verification.

How often should physical verification happen? ▾

At least once a year for the full register, timed to support the year-end close and audit — with portable, high-value or high-turnover assets such as laptops checked more frequently, since they carry the highest risk of loss or unrecorded transfer between employees.

What evidence supports a disposal or write-off? ▾

Documented approval for the disposal, proof of the sale or scrapping (invoice, scrap receipt, or a loss/damage report), the resulting gain-or-loss-on-disposal accounting entry, and removal of the asset from the register — recorded together, not just a ledger entry with no supporting file.

Source and review trail

Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.

Primary category: Business Case Studies & Corporate Strategy
Official starting point: www.mca.gov.in