Summary of "Physical verification of fixed assets by CA Vinay #ca#charteredaccountant #physicalverification"
The video presented by CA Vinay focuses on the process of Physical Verification of fixed assets in a company. The main financial strategies, methodologies, and steps involved in this verification process are outlined as follows:
Main Financial Strategies and Methodologies:
- Physical Verification Importance: Ensures that the fixed assets listed in the company's records actually exist and are in good condition.
- Internal Control Evaluation: Assessing the internal controls related to Asset Management is crucial for accurate verification.
- Valuation Procedures: Understanding the methods used for asset valuation and ensuring they are reflected in the company's books.
Step-by-Step Guide for Physical Verification:
- Preparation:
- Gather necessary documentation from the client, including:
- Asset numbers and details.
- Authorized personnel for asset purchases.
- Custodianship details.
- Internal control processes.
- Updated Financial Statements.
- Invoices for newly purchased assets.
- Information on retired or scrapped assets.
- Details of required improvements and maintenance contracts.
- Verification Process:
- Confirm the existence of each asset by comparing physical assets with records.
- Check the condition of the assets and their documentation (ownership, agreements).
- Validate the opening and closing balances of assets in the books.
- Document any discrepancies or observations.
- Reporting:
- Compile findings and observations into a report.
- Provide recommendations based on the verification process.
- Ensure that the report is approved and reflects the overall status of the physical assets.
The video emphasizes that Physical Verification is a straightforward yet essential process for maintaining accurate financial records and ensuring the integrity of Asset Management.
Presenter:
Category
Business and Finance
