Fixed Asset Register and Depreciation Close: AS 10 Evidence Pack
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 Business Expense Evidence for Freelancers.
Detailed analysis
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
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
- Capitalising without asset tag.
- Expensing capital items inconsistently.
- No custodian tracking for laptops.
- Depreciating after disposal.
- No physical verification report.
Official reference framework
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.
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.
- MCA: Accounting Standard (AS) 10 Property, Plant and Equipment
- ICAI: Compendium of Accounting Standards
- India Code: Companies Act, 2013 Section 128 - Books of account
- India Code: Schedule III to the Companies Act, 2013
FAQs
A record of company assets with cost, location, custodian, depreciation and status.
It provides accounting guidance for property, plant and equipment.
Yes, especially portable assets.
At least periodically; high-risk portable assets more frequently.
Approval, sale/scrap proof and accounting entry.
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