You have purchased equipment, but tracking sometimes stops at the invoice and payment. A few years later, it becomes difficult to know which assets are still in use, sold or replaced. The fixed asset register helps you keep this history. It links the actual equipment to the amounts presented in the accounts.
The framework to review
The classification of an asset, its valuation and its depreciation depend on the applicable accounting framework and rules. The accounting and tax treatments may require separate analyses. A purchase, a rental and a lease are not the same. Do not apply a depreciation period or tax benefit observed elsewhere without checking the asset, the contract and the company's situation.
Identify assets to be tracked over time
Start with premises, equipment, vehicles, machinery, software and other items used over time. A fixed asset is not defined solely by the fact that its price appears high. The expected use, the nature of the asset and the applicable rules must be reviewed. Inventory intended for sale follows a different logic.
Ask the firm for a working rule for recurring cases and a procedure for unusual cases. The company can then provide purchase information with the relevant context: replacement of an item, new equipment, maintenance work or improvement. Avoid artificially splitting a transaction into several invoices in order to give it a different treatment.
Create a record for each asset or relevant group
Give the asset a stable identifier. Add its description, location, person responsible, invoices and the date on which it started to be used. For a complex group, the firm may need to distinguish several items. A single overall invoice does not always sufficiently explain their respective uses and useful lives.
The register must also state the selected cost and the items reviewed to determine it. Have the treatment of costs directly related to acquisition, installation and VAT clarified according to the circumstances. The amount paid alone is not a complete answer to the question of the initial carrying amount.
Explain the depreciation schedule
Depreciation allocates the depreciable amount according to a selected method and period. It does not correspond to a new cash outflow each year. Payment may have taken place at the outset or be financed by a loan; debt tracking must remain separate from asset tracking.
Ask how the start date, period, method and any residual value were determined. If conditions of use change, inform the professional: equipment used much more intensively, a production line shut down, damage or early replacement. An accounting decision must be documented, and its tax treatment cannot be presumed to be identical.
Check the existence and condition of assets
At appropriate intervals and when preparing the closing, compare the register with reality. Is the equipment still present? Where is it located? Is it usable? Has it been lent, transferred or scrapped? Responses from operational teams are often essential to make the file reliable.
A fully depreciated asset may still be used; this does not mean that it should disappear from tracking. Conversely, an asset with a positive carrying amount may have lost its usefulness. Any impairment follows an analysis different from scheduled depreciation. Report the facts and let the professional assess their consequences.
Document the sale, disposal or change of contract
A disposal must be linked to an identifiable event: sale, destruction, loss, return or another situation to be explained. Retain the date, supporting documents and any disposal proceeds. A simple absence during an inventory count is not enough to decide the treatment. You must first understand what happened and who approved the decision.
For a vehicle or equipment under leasing, review the documents before the end of the contract: return, extension or purchase option may lead to different steps. Notify the firm before the event, so that the tracking of assets, debts and payments remains consistent.
The table to take action
| Information | What it is used for | Document or contact |
|---|---|---|
| Identifier and location | Find the asset and the person responsible for it | User team, inventory |
| Cost and components | Understand the selected value | Invoices and acquisition file |
| Commissioning and use | Review the start and depreciation period | Commissioning report |
| Disposal or change of condition | Update the register and the accounts | Sale, return, record or decision |
Distinguish purchase, depreciation and repayment
Fictional and deliberately simplified example: a company acquires equipment with a depreciable basis of 12 000 euros. To illustrate the calculation, a period of four full years, a straight-line method and no residual value are assumed. The illustrative annual depreciation charge is therefore 3 000 euros. This selected period is not a Luxembourg depreciation schedule. If the asset was paid for through a loan, repayments follow the financing schedule; they do not replace the depreciation calculation. At the end of the second year, the simplified carrying amount is 6 000 euros, under these assumptions only and without any other adjustment. The example shows why three schedules may be needed: the asset register, the depreciation schedule and the bank debt.
Your preparation checklist
- Identify the asset, its use and its location.
- Gather the invoices and cost components.
- Document the commissioning and the selected method.
- Keep the tracking of the asset separate from that of its financing.
- Compare the register with reality regularly.
- Inform the firm of loss of usefulness and disposals.
Frequently asked questions
Must a depreciated asset be replaced?
Not necessarily. The end of the depreciation schedule is not a purchase decision. The condition, use, maintenance costs and the company's needs must be reviewed.
Is the monthly loan instalment depreciation?
No. It concerns financing and may include repaid principal and interest. Depreciation concerns the accounting allocation of the asset's value.
Can the same period be applied to all equipment?
Do not assume so. Assets, their uses and the applicable rules may differ. Have the choices and any tax consequences documented.
Useful terms in this guide
Questions to ask the professional
- Which purchases must appear in our register?
- How can we justify the selected periods and start date?
- How should we report a sale, a loss of usefulness or a missing asset to you?
To clarify the engagement to be entrusted, also consult our accounting file.
And for your situation?
Start with a few significant items of equipment and check whether you can reconstruct their complete history. This test quickly reveals missing information. To structure the register and review accounting and tax choices, search the professional directory for a professional suited to your company and prepare the relevant contracts and invoices.
Sources and verification
References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.
- Guichet.lu — méthodes d’établissement des comptes
- Guichet.lu — acquisition ou location d’immobilisations
This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.
Your next step
A specific need deserves the right contact
Accounting, taxation, company formation or payroll: prepare your questions, then search the directory for the professional who can review your situation. Check their assignments and status before entrusting them with your file.