Key takeaways
- A fixed asset register records each asset’s ID, description, class, location, custodian, cost, depreciation and status, so the books and the floor can be compared.
- UAE companies keep Corporate Tax records for seven years and prepare financial statements that, for property, plant and equipment, reconcile each class from the start to the end of the year. Most organisations produce that from a register.
- Federal entities report on an accrual basis and follow the Cabinet-approved fixed asset and inventory policies.
- Verify the register with a physical count, resolve every difference with a reason, and record who approved it.
What a fixed asset register is
A fixed asset register is the list of every long-term asset an organisation owns and uses: buildings, vehicles, machinery, IT equipment, furniture and so on. For each asset it records what it is, what it cost, how it is depreciated and where it is now.
An “asset register” and a “fixed asset register” usually mean the same thing. The register links two views of each asset: the financial one (cost, depreciation and book value) and the physical one (tag, location, custodian and condition).
What a fixed asset register should contain
These are the columns finance teams and auditors expect. Our free template has all of them.
| Column | What it records |
|---|---|
| Asset ID and tag number | A unique ID for the asset, and the number on its barcode, QR or RFID tag. |
| Description, make and model | What the asset is, precisely enough to find it. |
| Serial number | The manufacturer’s serial number, where there is one. |
| Asset class and category | The class used in the financial statements, such as IT equipment, vehicles or furniture, and a finer category. |
| Location | Site, building, floor and room. |
| Custodian and department | The person responsible for the asset, and their department or cost centre. |
| Acquisition date and cost | When the asset was bought or capitalised and what it cost, with the supplier and invoice number. |
| Useful life and depreciation method | How long it will be used, and the method, such as straight line. |
| Accumulated depreciation and net book value | Depreciation to date, and cost less depreciation. |
| Status | In use, idle, under repair, disposed of or written off, with the date. |
| Last verification | When the asset was last seen in a physical count, and by whom. |
Is a fixed asset register mandatory in the UAE?
No single UAE law uses the words “fixed asset register” for every organisation, but several rules are hard to meet without one:
- Corporate Tax: Federal Decree-Law No. 47 of 2022 requires taxable persons to keep their records and supporting documents for seven years after the end of the tax period (Article 56), and to prepare financial statements (Article 54).
- Financial statements: IAS 16 requires, for each class of property, plant and equipment, a reconciliation of the carrying amount at the beginning and end of the period, showing additions, disposals, depreciation and other movements (paragraph 73). A register is how most organisations produce it.
- Federal government: federal entities report on an accrual basis under Cabinet Resolution No. 21/3F of 2021, and follow the federal Fixed Asset Management Policy and Inventory Management Policy, both approved by the Cabinet and announced by the Ministry of Finance in August 2024.
- Dubai government: Law No. (1) of 2016 Concerning the Financial Regulations of the Government of Dubai gives the Department of Finance the task of setting policies and procedures for managing tangible and intangible assets (Article 5).
This guide is general information, not legal or tax advice. Check your own obligations with your auditor or tax adviser.
How to build a fixed asset register
Set the rules
Agree with finance the capitalisation threshold, the asset classes, useful lives and the depreciation method.
Collect what you have
Take the asset listing from your ERP or accounting system, the invoices and any earlier counts.
Count and tag
Visit each site, put a unique tag on each asset and record its location and custodian.
Reconcile
Match what you found with the financial records, and resolve every difference before the register goes live.
Keep it current
Record additions, transfers, disposals and changes of custodian as they happen, not at year-end.
How to verify a fixed asset register
Physical verification compares the register with what is actually on site. A count usually runs like this:
Plan
Agree the sites, the order and the team, and freeze asset movements while the count runs.
Count
Scan every asset’s tag at each site. In a blind count, the counters do not see the expected list, so they record only what is there.
Reconcile
Classify each difference as not found, found but not on the register, moved, or damaged.
Resolve and approve
Give each difference a reason, and have the right person approve write-offs, additions and transfers.
Report
Keep the count results, the differences and the approvals as evidence for your auditors.
How often to count is set in your asset policy and agreed with your auditors. Portable and high-value assets usually need more frequent checks than buildings and fixed plant.
Free fixed asset register template
Download the fixed asset register template (Excel). It has every column above, straight-line depreciation and net book value formulas, sample rows to replace, and headings in English and Arabic.
When a spreadsheet stops being enough
A spreadsheet works while one person keeps it and the assets stay in one place. It gets hard to keep right once assets are spread across sites, change hands every week and are counted with scanners. That is when organisations move the register into asset tracking software, which keeps tags, custody and counts in one place and reconciles them with the books.
Where Birbal AI fits
Birbal AI’s own team builds and verifies registers on site: we tag every asset and run the physical count, supply the RFID tags and readers, and hand over the verified register in Sijil, our asset tracking system, which keeps custody, counts and reconciliation with your ERP in one place. We also compare the main asset tracking software options in the UAE.
Questions and answers
What is a fixed asset register?
A list of every long-term asset an organisation owns, with its ID, description, class, location, custodian, cost, depreciation, book value and status.
Is a fixed asset register mandatory in the UAE?
No single law names it for every organisation, but Corporate Tax record keeping (seven years), financial statements under IAS 16 (a reconciliation for each class of property, plant and equipment) and, for federal entities, the Cabinet-approved fixed asset and inventory policies are hard to meet without one.
How do you prepare a fixed asset register?
Agree the capitalisation threshold, classes and depreciation rules; collect the asset list from your accounting system and invoices; count and tag the assets on site; reconcile what you found with the books; then record every change as it happens.
What is the difference between an asset register and a fixed asset register?
In practice there is none: both describe the list of an organisation’s long-term assets. Some organisations also track low-value items, such as small IT equipment, in the same register without capitalising them.
How often should fixed assets be physically verified?
Your asset policy sets it, agreed with your auditors. Portable and high-value assets usually need more frequent checks than buildings and fixed plant.
Is there a free fixed asset register template?
Yes. Download our Excel template from this guide. It has the standard columns, depreciation formulas and English and Arabic headings.
Sources
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Ministry of Finance)
- IAS 16 Property, Plant and Equipment (IFRS Foundation)
- Ministry of Finance: Accrual Accounting Programme
- Ministry of Finance: Fixed Asset Management Policy developed in accordance with best practices (21 August 2024)
- Ministry of Finance: Inventory Management Policy unifies procedures in the federal government (8 August 2024)
- Dubai Law No. (1) of 2016 Concerning the Financial Regulations of the Government of Dubai
Birbal AI is an independent company based in Abu Dhabi. Facts about third parties come from the sources above; check them for the latest position.