The products in question are those that help You in Your work on the long term, e.g. furniture, devices, tools, vehicles, or anything that facilitate Your everyday and one-of-a-kind activities. Fixed assets stocktaking is the counting of these objects.

Is it obligatory? Is it worth it?

Both questions are answered by yes – and it is a rare occasion. Let’s take a look into the stocktaking (as a physical count of the inventory) and the details concerning its binding character.

Stocktaking is obligatory, because:

According to the accounting law (Act C of 2000, 69§ (1)) at each closing of the business year the items of the balance must be supported by a stocktaking.

  • every 3 years in the case of continuous register (in compliance with accounting principles) must be supported by
  • every year in the case of discontinuous register the inventory must be supported by quantitative count (stocktaking).

The laws allow the stocktaking to take place in the quarter preceeding or succeeding the balance sheet date (Act C of 2000, 69§ (5)). So if the balance sheet date is 31st December, then the stock can be taken between 1st October and 31st March of the next year, and it legally supports the balance.

 

Stocktaking is worth it, because...

A significant part of a company’s cash equivalents stands in the fixed asstes. Purchasing and management strive for finding the ideal amount of supporting assets to buy. This is helped by stocktaking fixed assets.

Provided that the ideal computer, display, ergonomic chair, desk etc. have all been purchased, it is the least that we can do to keep record of what (and how many) we have, where they are, what value they represent.

By taking stock at least once in a year, we can ensure that the fixed assets can be tracked, and revealing potentional negligent asset management.

Fixed asset stocktaking is best for revealing deliberate thefts as well.

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