A fixed asset register (FAR) is nothing more than a list of
fixed assets
A fixed asset, also known as long-lived assets or property, plant and equipment (PP&E), is a term used in accounting for assets and property that may not easily be converted into cash. Fixed assets are different from current assets, such as cas ...
that belong to an
entity
An entity is something that exists as itself, as a subject or as an object, actually or potentially, concretely or abstractly, physically or not. It need not be of material existence. In particular, abstractions and legal fictions are usually ...
. Traditionally the fixed asset register was maintained in written form by a
bookkeeper using a book that was set aside specifically for that purpose. Nowadays, it is more often held in electronic format in an
accounting system.
The main purpose of a fixed asset register is ''to keep track'' of the
book value
In accounting, book value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. Tra ...
of the assets and determine
depreciation
In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the a ...
to be calculated and recorded for management and taxation purposes. A secondary purpose is to allow for the easy identification of an asset by assigning each asset a unique
ID which may be printed on labels in the form of a
barcode
A barcode or bar code is a method of representing data in a visual, machine-readable form. Initially, barcodes represented data by varying the widths, spacings and sizes of parallel lines. These barcodes, now commonly referred to as linear or o ...
.
Fixed asset
Financial accounting