There is a lot of discussion and misconceptions about the Fixed Asset Register and how it works. The basic principle of the register is to classify, record and report all the fixed assets. It is believed that such a system will prevent fraud and embezzlement and that it will also serve the purpose of a central clearinghouse for financial institutions and insurance companies. However, there are many flaws with this theory. They have shown that there are numerous cases of fraud and embezzlement and even with the existing measures in place, the chances of fraud and embezzlement are still very high.
There is no such thing as a national register of fixed assets. There is no such thing as a standard international standard for the classifications of fixed assets. Each country has its own set of rules and regulations regarding investment and business dealings with the fixed assets. So, it would be impossible to have a uniform standard across the world. If there was a standard, there would be no need for the formation of the fixed asset register- fixed asset register program!
Another myth is that the fixed asset register is necessary for the international banking and corporate sector. This again is a total misconception. The offshore banking sector is fully able to operate without the use of this particular tool. There are no fixed assets kept by them which could be registered. There are very simple explanations as to why the formation of this particular instrument is necessary. This is because there are too many regulations pertaining to the handling and investment of the fixed assets which would otherwise be very difficult to regulate.
…April 12, 2021April 12, 2021