A fixed asset register (FAR) is nothing more than a list of
fixed assets that belong to an
entity
An entity is something that exists as itself, as a subject or as an object, actually or potentially, concretely or abstractly, physically or not. It need not be of material existence. In particular, abstractions and legal fictions are usually r ...
. Traditionally the fixed asset register was maintained in written form by a
bookkeeper using a book that was set aside specifically for that purpose. Nowadays, it is more often held in electronic format in an
accounting system.
The main purpose of a fixed asset register is ''to keep track'' of the
book value of the assets and determine
depreciation
In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the a ...
to be calculated and recorded for management and taxation purposes. A secondary purpose is to allow for the easy identification of an asset by assigning each asset a unique
ID which may be printed on labels in the form of a
barcode
A barcode or bar code is a method of representing data in a visual, Machine-readable data, machine-readable form. Initially, barcodes represented data by varying the widths, spacings and sizes of parallel lines. These barcodes, now commonly refe ...
.
Fixed asset
Financial accounting