Faculty of business department of accounting an assessment of fixed asset managementin the

Assigning Codes for Fixed Assets
To assign the identification number correctly, the assets shall be arranged in order to their section 
they are in use identified and shall be kept recorded in books and the list registered. This 
registration book is supposed to be kept with the necessary information it should bear, name of
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the assets, the identification code and should indicate under which the worker in use,, this 
registration book shall have to verify against the reality on ground at the end of the fixed asset 
counting exercise.To control and use fixed asset properly the organization must assign 
identification number or code to each types of fixed assets (Barth and Beaver: 1998; 284).
E.g. assigning code for a particular automobile car
Public
Source of Account
Major
Place Directorate
Identification
body
budget
code
category
code
number
Code MOFED
101
4521
01
HO
FD
0001
Eg. MOFED-101-4521 ---01 -HD---FD—000
The Cost of Maintenance and Repairing Fixed Assets
The periodic costs that are incurred for repairing and maintenance of fixed assets should be kept 
as an asset of capitalization that incurred for repairing could be recorded as a capital when.
• The service year that fixed asset is believed to be prolonged as extended or a result of the 
repairing of the maintenance or the capacity of production is improved as a result of the 
sum is approved.
• The expense incurred is equal or more than 25% of the cost of the asset it self
• Cost of expense incurred for maintenance of repairing should capitalized as for as it 
meets with these requirements.
The content that the maintenance could enhance the service year or improve its capacity; when:
• Per the recommendation, the technical main department shall provide on basis of the 
maintenance performed attached with annexed performance of the repairing reports and 
this improvement of the services year and the capacity should be given in figure 
quantified and the details of the condition or the change should be presented on time.
• Regarding the cost expenses incurred for vehicles, the action shall depend on the reports, 
the garage department reports just after the repairing or maintenance are done the 
recommendation be addresses.
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In regards with the expenses of the maintenance of office equipment in shall depend on the 
condition of the reports presented, together with the concerned professionals on the performance 
of the repairing and the consequence results after then.As maintenance and repair for the 
organization is handled through the head office, the report on the content of the repairing and 
maintenance should be presented to the technique, the garage office service of the head office 
accordingly (Barth and Beaver: 1998; 321).