Fixed asset accounting

I often find that RFOs deal incorrectly with this subject since fixed asset accounting for local councils is quite different from that used in either the commercial or charity sectors.

In particular, there is no concept of depreciation and normally the value of a fixed asset remains constant from when it is purchased until it is disposed of.

Some RFOs use the value of the fixed asset in the insurance schedule but, since that is often index-linked, this is incorrect.

You can find full details of just how to handle fixed assets in The Practitioner’s Guide starting at Section 3.61