![]() ![]() The first thing you need to examine is why and who the donor was. Let’s say you received a significant asset.įor example, some piece of equipment, free land or something like that. The starting point: Why did you receive your free asset? The same applies in a multibillion dollar company that pays monthly telecom plans for their 100 executives and receives 100 mobile phones at no cost from the network provider. You need to apply your judgment to assess whether your free asset received is material enough to bother.įor example – when you receive pens, lighters or other promotional materials, they might not make any difference in your books, so just don’t worry about their accounting. Please note that this article is not about giving assets for free – for this purpose, please see here and here. In this article I try to tackle this quite frequent issue and give you some hints. So what should you do in a similar situation, when you receive some free assets? Sorry, I don’t remember now what machines they purchased, but I remember the discussion with the accounting manager that followed. We got them free when we purchased the machines.” The boss of the warehouse, a bored grey-haired guy, murmured with the tobacco pipe between his teeth something like: “ Why are these cooling units not recorded in the register?” One of my colleagues spotted some cooling units, new – still unpacked, and he could not find them in the document with the register of fixed assets, so he asked: It was a freezing December morning, huge piles of snow made it quite difficult to get around and we were sneaking in and counting various types of machines in the client’s storage. Many years ago I attended the counting of fixed assets in one big manufacturing company. ![]() However, when your company receives some free assets, then the question is:Īre they really received at no cost and no strings attached? … at least that’s what Janet Jackson sang in one of her top hits. ![]()
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