Fixed Asset Tagging & Verification Services

Q: What is a ghost asset and how common is the problem?

A ghost asset exists in the register but has been lost, stolen, or disposed of without being removed. Studies suggest 10 to 30 percent of assets on many registers are ghost assets, causing overstated values and incorrect depreciation.

Q: How frequently should a fixed asset verification be conducted?

Comprehensive verification at least once every three years, with partial verifications of high-value assets annually. Companies undergoing restructuring or transactions should conduct a full verification at the time of the event.

Q: What tagging technology is best for fixed assets?

Barcode tags for standard assets, QR codes for more data capacity, and RFID for automated scanning in large or challenging environments such as warehouses.

Q: Is physical asset verification required under Indian accounting standards?

Yes. Management must verify fixed assets at reasonable intervals and address discrepancies in financial statements. Statutory auditors must report on whether verification has been conducted.

Q: Can fixed asset verification be done without disrupting operations?

Yes. Verification is planned to minimise disruption, often conducted in stages or during scheduled maintenance shutdowns.

Maintain Accurate Fixed Asset Records with Independent Physical Verification

Fixed assets represent a significant portion of most businesses' balance sheets. Yet many organisations carry inaccurate fixed asset registers due to missing entries, ghost assets, unrecorded disposals, and misclassifications that distort financial statements and affect tax calculations.

Our fixed asset tagging and verification services provide a systematic, independent reconciliation of physical assets with the fixed asset register. This supports scrap validation, business restructuring, and transaction due diligence — and is often a prerequisite for Ind AS or IFRS compliance where accurate asset records are mandatory.

Our Fixed Asset Services

Physical Verification

Systematic physical verification of all assets at each location against the fixed asset register.

Asset Tagging

Affixing unique asset tags — barcode, QR code, or RFID — to each asset for ongoing tracking.

Register Reconciliation

Reconciling physical count findings with the register to identify excess, missing, and unrecorded assets.

Condition Assessment

Assessing the physical condition and useful life of assets to support impairment testing and useful life reviews.

Register Cleansing

Updating the fixed asset register to reflect accurate asset details, locations, and values.

Component Accounting

Supporting component accounting requirements under Ind AS 16 and IFRS for accurate depreciation calculations.

Benefits of Fixed Asset Verification

Ensures fixed asset registers accurately reflect the physical reality of the business
Eliminates ghost assets and prevents overpayment of insurance premiums
Supports accurate depreciation calculations and correct tax treatment
Provides a reliable asset base for transaction due diligence
Meets auditor and statutory requirements for physical verification
Enables implementation of ongoing asset tracking systems

Frequently Asked Questions

What is a ghost asset and how common is the problem?

A ghost asset exists in the fixed asset register but has been physically lost, stolen, or disposed of without being removed. Studies suggest 10 to 30 percent of assets on many registers are ghost assets, resulting in overstated values, incorrect depreciation, and excess insurance cover.

How frequently should a fixed asset verification be conducted?

Most standards recommend comprehensive verification at least once every three years, with partial verifications of high-value assets annually. Companies undergoing restructuring or transactions should conduct a full verification at the time of the event.

What tagging technology is best for fixed assets?

Barcode tags are cost-effective for standard assets. QR codes offer more data capacity and smartphone readability. RFID tags enable automated, non-line-of-sight scanning and are preferred for large asset bases or challenging environments such as warehouses and manufacturing plants.

Is physical asset verification required under Indian accounting standards?

Under the Companies Act and Indian accounting standards, management must verify fixed assets at reasonable intervals and address discrepancies in financial statements. Statutory auditors are required to report on whether verification has been conducted.

Can fixed asset verification be done without disrupting operations?

Yes. Verification is planned in advance and scheduled to minimise disruption, often conducted in stages or during scheduled maintenance shutdowns. Our teams work alongside operational staff with minimal impact on day-to-day activities.

Get an Accurate Picture of Your Fixed Assets

Independent fixed asset tagging and verification across all locations and asset types.