13.1. Definition:

13.1.1. An asset is an item that OLOG owns and uses while providing for administration, meetings of the parish and her various ministries/groups, religious services, Sunday School activities and other similar events.

13.1.2. A fixed asset is an asset that OLOG retains for more than a year such as furniture & fixtures, office equipment, computers, vehicles, land and buildings and such similar items as the parish may own.

13.1.3. It does not include consumable and stock items. Consumable items are charged out to expense. Stock items are separately recorded in Stock Accounts e.g. stock in trade, etc.

13.1.4. Fixed asset items costing less than RM500.00 are not capitalised but charged out to expense in that accounting year. For the purpose of good control such items should be recorded in the assets register with zero value.

13.1.5. Fixed assets are depreciated over a number of years to reflect their usefulness over such period. For OLOG, depreciation is provided on a straight line basis and the rates of depreciation are as follows:

13.2.1. An assets register must be set up and regularly updated for the following reasons:

(a) To allow the cost of the asset to be spread (in accounting terms) over its deemed working life.

(b) It is required by accounting standards and for auditing and other statutory requirements.

(c) For security reasons, details of the assets are kept, their location noted and the name of an employee or person-in-charge recorded in the register.

(d) It also provides for insurance listing which becomes useful when insurance is/has to be taken up.

(e) Where a fixed asset comprises a group of items e.g. sofa set with long couch, single chairs, coffee table & side tables, these should be recorded as one group item and the total value should include government service tax if any.

13.2.2. An annual reconciliation of the assets register to the general ledger account is necessary to ensure that the items and values agree. In the event of a discrepancy, this should be investigated and following that, adjustments should be made to the assets register or in the case of a missed accounting entry, a journal should be prepared to rectify the discrepancy.