BENEFITS OF ASSETS REGISTER, VERIFICATION & VALUATION TO BUSINESS OWNERS.

In today’s dynamic world of Commerce, Organizations/Institutions, Government Establishments and Chief Executives (Leaders) are daily faced with the question of how much their Company/organisation assets are worth. This issue arises frequently and under differing situations too e.g for insurance purpose against theft, fire, floods etc. Also for assets tracking/monitoring, claim of ownership, income monitoring, public assets accounting, future development plans, vital decision making etc assets verification, valuation & production of assets register are very important to every business owner.

What is An Assets Register:

Assets register is a document that contains list, details and corresponding values of all assets (either moveable, immovable or both) of an organization and it could be used to back up sum total assets of an organization, firm or company be it private or public for optimum utilization of the assets with a view to generate more income, seek assistance from agencies like UNICEF, World Bank, USAIDS or for bank facility while emphasis should be placed on arriving at values based on accurate and up-to-date knowledge of the market having in mind the reasons for the valuation.

Consequently, the main aim of a Valuation is to ascertain the present worth of an asset or an interest in economic terms. It entails the determination of the value or worth of an interest in an asset, base on the nature of the property/asset, the purpose of valuation and the market trend at a point in time.

Therefore, it is advisable for every Institution, Organization, Companies, Corporations and the likes, be it Government or Private to keep a register of all its assets. An Assets Register must be kept in order to allow an Institution or Organisation to keep track of details of each asset, ensuring control and preventing misappropriation of asset. It also keeps track of the correct value of assets, which allows for computation of depreciation and for tax, balance sheet purpose and insurance purposes. The Assets Register generates accurate, complete, and customized reports that suit the needs of management.

Aside that it also allows an establishment to keep track of assets that are not under simple, direct control of the establishment or Institution. This means owned and leased assets, assets under construction, and imported assets and it can also be used to aid in capital budgeting and planning for future development.

It is of upmost importance for a business to periodically verify and re-value its assets for the following reasons:

1.To confirm that the assets are actually in existence.

2. To ascertain the current values of the existing assets at all locations.
 
3. To ascertain that the assets had been acquired for the purpose of the business and under proper authority.
 
4. To confirm that owner ship of the asset rests with the Organization.
 
5. To ascertain that no charge has been created on the asset.
 
6. Ensure that the current book value of the assets are determined after providing correct amount of depreciation for various years.
 
7. Ensure that values reflect current physical condition of the asset.

8. For Balance Sheet purpose and Planning Development .

9. To show the true rate of return on capital employed.

10. To conserve adequate funds in the organisation for replacement of fixed assets at the end of their useful lives. Provision for depreciation based on historical cost will show inflated profits and lead to payment of excessive dividends.

11. To enable proper internal reconstruction, and external reconstruction.

An asset register is a method used to track an organization's assets. Such a register can contain a complete list of all assets owned, including investment and intangible assets. The most common type of asset register is probably a fixed asset register (FAR), which tracks only fixed assets.

Fixed assets are those consisting of property, equipment, intellectual property and other items of great value. This includes land, buildings, machines, and vehicles. Intellectual property refers to assets that are not tangible, including patents, copyrights, trademarks and goodwill. While a current assets register would contain items such as supplies, prepaid assets and cash on hand, only assets that are a standard part of an organization’s depreciation activities are included in a FAR.
Assets Register provides up-to-date, real-time information regarding the value of all assets within the organization by keeping a record of depreciation and current asset values, and a facility that evaluates the remaining worth by tracking income and expenditures derived from assets.

The Assets Register system enables you to manage and control your non-current assets in terms of wear-and-tear depreciation, book value, disposals, additions, and re-valuations. The information contained in the Assets Register can integrate to the General Ledger, or be run standalone. You can optionally record costs incurred in the maintenance of assets against the individual asset concerned. These costs can be broken down over a number of expense codes.

Meanwhile, valuations lie at the heart of most major corporate transactions, from financial reporting to mergers and acquisitions, to asset based lending. Similarly for small businesses and estates, valuations are required for insurance purposes, borrowing and lending, donations and family matters such as estates for a deceased or a divorce. As these transactions and events become more complex, the need for objective, independent, and comprehensive valuations becomes greater.

Here is where we can assist; our team consists of chartered estate surveyors & valuers with "Big 4" valuation backgrounds and with significant experience in the valuation field. Talk to us today should you wish to value your company assets or get an assets register for your organization.

Contact: +2348032296562, +2349049045703, +2348117949689 (Whatsapp only).
Email: a2realmartoptions@gmail.com.
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