A fixed asset physical verification report (محضر جرد الأصول الثابتة in Arabic) is a signed record of what a count team found on a given date, compared with the fixed asset register and the books. The team signs it, the finance manager or another authorized person approves it, and the external auditor usually asks for it at year end. Below is a column template you can copy, then the count step by step.
How the report differs from the asset register
The fixed asset register is a living list of what the business owns, with each asset’s cost, location and custodian. It changes whenever you buy, move or sell something.
The report is a snapshot of one day: on this date, in this branch, we found these assets and could not find those. Once signed, it is not edited. Corrections go into the register and the books, with the report as the evidence.
It is not a stock count either. Fixed assets stay for years and lose book value through depreciation, and their accounting falls under IAS 16 Property, Plant and Equipment. In Saudi Arabia, publicly accountable entities apply IFRS as endorsed by SOCPA, and SMEs apply the IFRS for SMEs Standard endorsed in the Kingdom unless they choose full IFRS (IFRS Foundation).
Why bother? A line in the ledger does not prove the asset exists. A laptop can stay on the register two years after the employee who had it left, and a branch can buy a new AC unit while an identical one sits in the warehouse. The count finds both.
Who signs the report
Each company names its count team in its internal policy. The working rule is segregation of duties: whoever holds an asset should not be the only one counting it.
- Count team. Usually someone from finance, a branch or department representative, and the asset or store keeper. Each signs the pages they counted.
- Branch or department manager. Confirms they have seen their site’s results, or records an objection.
- Custodians. Sign for what was found in their custody, or explain what is missing.
- Approver. The CFO or general manager, who approves only after the differences have been investigated.
In a private school, for example, someone from finance counts the computer lab with the lab supervisor, never the supervisor alone.
What goes in the report
Header
- Company name and commercial registration (CR) number.
- Report number, count date, start and finish times.
- Branch or site, and scope: all assets or selected categories.
- Names and job titles of the count team.
- Date of the register extract the count is based on.
Column template
Copy these columns into Excel or your system:
| Column | What to write |
|---|---|
| No. | Line number |
| Asset tag | The number printed on the asset’s label |
| Description | Type, brand and model, such as “24,000 BTU split AC” |
| Category | AC, refrigeration, IT, furniture, kitchen equipment |
| Serial number | From the nameplate, useful when the label is missing |
| Recorded location | Branch and room as shown in the register |
| Actual location | Where the team found it |
| Custodian | Employee name, for assets held in personal custody |
| Condition | Working, needs maintenance, damaged |
| Count result | Found, misplaced, missing, unrecorded |
| Notes | Reason for the difference, transfer document number, photo |
Filled in, it looks like this:
| Asset tag | Asset | Recorded location | Actual location | Result |
|---|---|---|---|---|
| AS-0142 | Split AC | Olaya branch, dining hall | Olaya branch, dining hall | Found |
| AS-0318 | Drinks display fridge | Al Nakheel branch | Al Malqa branch | Misplaced |
| AS-0477 | Laptop | Head office, employee custody | Not found | Missing |
| No tag | Laser printer | Not in the register | Al Malqa branch, cashier | Unrecorded |
Summary and signatures
Close with a summary: the number of assets on the register, how many were found, misplaced, missing or unrecorded, and any damaged items that need a decision. Add signature blocks with dates, and strike through empty rows before anyone signs.
Steps from planning to reconciliation
- Set the scope and date. Pick a quiet day and freeze transfers between branches until the report is closed.
- Reconcile the register to the general ledger first. Total cost on the register should equal the balance of the fixed asset accounts, and the same applies to accumulated depreciation. Clear any office-side difference before the count starts.
- Split the sites among teams of two. One person reads the label while the other records.
- Check that every asset carries a label. An untagged item is hard to match to its line in the register. If you have not tagged yet, start with our guide to QR, barcode and RFID tags.
- Count room by room, starting at the door and moving in one direction. Note the condition, and photograph high-value items as well as anything damaged or out of place.
- Count in both directions. Register to floor asks whether everything recorded is there. Floor to register asks whether everything you can see is recorded. A team that only works from the printed list walks straight past unrecorded assets.
- Classify every line as found, misplaced, missing or unrecorded. A misplaced asset exists but sits somewhere else; an unrecorded one is on site but not on the register.
- Investigate differences before signing. Leave the register untouched until the report is closed; a location corrected mid-count makes the difference vanish without a trace.
- Approve, then post the adjustments. Update the register and the journal entries, bring the custody statements in line, and confirm that the register total matches the ledger again.
How to handle the differences
Missing assets
Do not delete a missing asset on count day. Look for it first. It may be with an employee or at a repair workshop, or it may have been sold or scrapped without paperwork.
If it will not come back, IAS 16 says to derecognize an asset on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss is the net disposal proceeds less the carrying amount, and it goes to profit or loss (CPDbox). Attach the signed write-off approval to the report. If you report under IFRS for SMEs, ask your accountant for the matching treatment.
Misplaced assets
Correct the location in the register and support the move with a transfer document. Then ask why it moved without a record. A fridge that travels between branches with no paperwork is how a register goes stale within months. For assets in personal custody, update the employee custody register too.
Unrecorded assets
Find the purchase invoice. If the cost is above the capitalization threshold in your accounting policy, add the asset to the register and the books at cost. If it was expensed when bought, add it to your tracking list only, so you still know where it is and who holds it.
Damaged assets
A broken asset that is present is not a count difference, but it needs a note and a decision on whether to repair or dispose of it. A restaurant fridge that fails every two months may cost more to keep fixing than to replace.
What the external auditor usually asks for
The auditor will not count for you, but will test how well you counted. CPCON’s guide to auditing fixed assets calls physical verification the core procedure for the existence and completeness assertions (CPCON). Expect requests for:
- The complete report, signed and approved, with every page.
- A register-to-floor sample. The auditor picks assets from the register and asks to see them. This is how ghost assets turn up: items still on the books after they were sold or scrapped.
- A floor-to-register sample. Assets picked on site that must appear in the register.
- Disposals, shown to be authorized and removed from the register, with the gain or loss calculated correctly.
- The reconciliation of the register to the general ledger for cost and accumulated depreciation, with every variance explained. CPCON names unreconciled differences between the two as one of the most common audit findings.
The same guide gives high-value and mobile assets, such as IT equipment, vehicles and tools, fuller coverage, and notes that scanning tags during the count creates a verifiable evidence trail (CPCON).
Counting by scanning instead of paper
On paper, someone has to retype the handwritten count sheets into Excel afterwards, and that is where transcription errors creep in.
In Usool, you open a count session for each branch and the team scans the asset labels one by one. Each asset shows as found, missing or misplaced, and a scanned label that is not on the register is flagged too. When you finish, you download the count report as a PDF to sign and file for the auditor. Depreciation and book value stay in your accounting system. Count sessions come with the Growth and Pro plans, at SAR 375 and SAR 750 a month before 15% VAT (pricing), and the features page covers the rest.
FAQ
How often should fixed assets be physically verified?
Plan at least one full count a year before you close the financial statements, on a date agreed with your auditor. Laptops, phones and other assets that move around are worth a partial count each quarter.
Is a fixed asset count the same as a stock count?
No. A stock count measures quantities so that goods held for sale can be valued. A fixed asset count proves that each specific asset exists, and records where it is and who holds it.
Is a spreadsheet enough for the count?
For about 50 assets at one site, often yes. With several branches, copies multiply and nobody is sure which file is current. If you are weighing software, our checklist for choosing asset management software lists the questions to ask.
What do we do with an asset that has no label?
Record it with its description and serial number. If it matches an entry in the register, attach that asset’s label. If it does not, treat it as unrecorded.
If your next count is only weeks away, start on the register and the labels now. You can try Usool free for 14 days with every Growth feature and no card: import your assets from Excel, run a count session in one branch, and compare the time with your last count.