What is a fixed asset register in Hong Kong accounting

Fixed Asset Register Hong Kong Explained

A fixed asset register records every tangible asset a company owns, listing each asset's cost, accumulated depreciation, and net book value. For Hong Kong companies, the register is a practical necessity. It supports the accounting records required under the Companies Ordinance (Cap. 622) and provides the data for depreciation charges. These charges flow into the general ledger and appear in the financial statements.

Fixed Asset Register Hong Kong: Supporting Accounting Records

The fixed asset register forms part of the accounting records required under section 373 of the Companies Ordinance (Cap. 622). These records must disclose the company's financial position with reasonable accuracy. The register tracks each asset from acquisition through depreciation to disposal. Without it, you cannot verify the depreciation entries in the general ledger.

Asset Register Hong Kong: How It Is Used

An asset register records each asset's date of purchase, cost, depreciation method, accumulated depreciation, and location. The total from the register must tie to the fixed asset balance in the general ledger. A certified public accountant holding a practising certificate under the HKICPA checks this reconciliation during the statutory audit.

Fixed Asset Register Accounting: Depreciation Basis

Assets are recorded at cost and depreciated annually, usually on a straight-line or reducing-balance basis. The company's accounting records, including depreciation schedules, must be kept for seven years. The register is prepared on an accruals basis. This matches the asset's cost against the income it generates over its useful life.

Maintaining Asset Register Hong Kong: Who Prepares It

Directors are responsible for maintaining the asset register. The register feeds into the financial statements and the directors' report. If the company has a statutory audit, the auditor will test a sample of assets against the register. This confirms the figures in the financial statements are accurate.

Hong Kong Company Fixed Assets: Audit and Compliance

Fixed assets are disclosed in the balance sheet within the financial statements. The register must be complete and up to date before the annual audit begins. A missing or inaccurate register is a common finding in audit queries. The Companies Registry does not require the register itself to be filed. The financial statements that rely on it are delivered annually with the annual return.