Aqid ERPEvery asset, what it cost and what is left of it
A fixed asset register (سجل الأصول الثابتة) lists each asset the business owns and uses for more than a year: what it is, when it was bought, what it cost, its useful life and depreciation method, the depreciation charged so far and the net book value. It is the subsidiary ledger behind the fixed-asset and accumulated-depreciation accounts, so its totals must agree to them in the trial balance.
- The company, the date the register is stated at, and a reference.
- Per asset: a number, a description and the date it was bought.
- Its cost, useful life in years and depreciation method.
- The annual depreciation, the accumulated depreciation to date and the net book value.
- Totals of every money column, and who prepared and approved the register.
The sample's arithmetic
Four assets on a straight line with no residual value, each charged from the month it was bought. A van of 60,000.00 over five years is 12,000.00 a year, 1,000.00 a month; bought in January 2025, it has carried 22 months by 31 October 2026, 22,000.00, leaving 38,000.00.
Together the four cost 120,000.00, carry 30,000.00 of accumulated depreciation and a net book value of 90,000.00, the equipment figures of the sample trial balance. Their monthly charge is 2,500.00, the sample journal entry's October depreciation.
| Van: 60,000 ÷ 5 = 12,000 a year, 22 months | 22,000.00 |
|---|---|
| Forklift: 36,000 ÷ 4 = 9,000 a year, 8 months | 6,000.00 |
| Laptops and server: 18,000 ÷ 3 = 6,000 a year, 2 months | 1,000.00 |
| Mobile phones: 6,000 ÷ 2 = 3,000 a year, 4 months | 1,000.00 |
| Accumulated depreciation | 30,000.00 |
| Net book value: 120,000 − 30,000 | 90,000.00 |
Choosing a method and a life
Under IFRS, which Saudi Arabia applies through SOCPA, the method should follow how the asset's benefit is used up, and the useful life and salvage value are estimates the business reviews each year. Straight line is the common choice where use is even. What the books use and what is allowed for tax are separate questions: the zakat and income tax rules set their own depreciation for the return.