Financial Accounting · Tangible non-current assets

Non-Current Asset Register and Control for ACCA FA

Updated 11 October 2026 · Fact-checked

A non-current asset register is a detailed record of each non-current asset the business owns, kept outside the ledger. It shows cost, depreciation and carrying amount per asset. You reconcile its totals to the general ledger control balances, then investigate and correct any differences.

Understand Non-Current Asset Register and Control

A business may own hundreds of assets. The general ledger holds only totals: one cost account and one accumulated depreciation account for each class, such as plant or vehicles. Totals cannot tell you which asset is where, who uses it, or when it was bought.

The non-current asset register fills that gap. It is a subsidiary record with one line per asset. It is not part of double entry. Think of it like a receivables ledger: the detail sits in the register and the totals sit in the general ledger.

Typical content for each asset:
- Description, asset number or tag, and serial number
- Location and the person or department responsible
- Supplier and date of purchase
- Cost, including delivery and installation
- Depreciation method, useful life and residual value
- Depreciation charge for the year and accumulated depreciation
- Carrying amount
- Revaluation details, if any
- Disposal date, proceeds and profit or loss on disposal

The register supports control. It helps you spot lost or stolen assets, because you can check physical assets against the register. It helps you calculate depreciation and disposal gains or losses. It supports the disclosures required by IAS 16. It also helps with insurance, maintenance planning and the prevention of fraud.

The register must agree to the general ledger. If total cost in the register differs from the ledger cost account, something is wrong. Common causes are an asset bought but not entered in the register, a disposal recorded in one place only, a depreciation error, or a posting to the wrong account. You find the difference, correct the wrong record, and the totals agree again. Physical checks, where staff inspect assets and tick them off against the register, are the other half of control.

Key formulas to remember

Carrying amount: Carrying amount = Cost (or revalued amount) − Accumulated depreciation; Calculated per asset in the register. The register total should equal the ledger cost less ledger accumulated depreciation.
Reconciliation rule: Register total cost = General ledger cost account balance; Do the same check for accumulated depreciation. Any difference means an error in the register, the ledger, or both.
Profit or loss on disposal: Profit or (loss) = Disposal proceeds − Carrying amount at date of disposal; The register gives the cost and accumulated depreciation of the asset sold, so you can work this out.
Register roll-forward: Closing cost = Opening cost + Additions − Disposals at cost (± revaluations); Use the same layout for accumulated depreciation: opening + charge for year − depreciation on disposals.

How to solve Non-Current Asset Register and Control questions

Use this method for any question on the register, its content or its reconciliation.

1Read what is asked: purpose, content, or a numerical reconciliation. Note whether it is cost, depreciation or carrying amount.
2For a purpose or content question, think of control, accuracy and disclosure. Pick the option that describes per-asset detail kept outside double entry.
3For a reconciliation, write down the register total and the ledger balance side by side.
4Find the difference. Then check each item against the list of likely causes: unrecorded addition, unrecorded or wrongly recorded disposal, wrong cost, wrong depreciation, or a posting to the wrong account.
5Decide which record is wrong. Compare to source documents such as invoices and disposal records. The record that disagrees with the document is the one to fix.
6Adjust the correct record. If the ledger needs a change, write the journal. If only the register is wrong, no journal is needed.
7Check that the adjusted register and ledger now agree, and answer in the form requested.

Quickest way: Difference-first reconciliation

When to use it: Use this for number-entry or multiple-choice questions that give register and ledger totals and ask for the adjusted figure or the cause.

Subtract one total from the other and note the size and direction.
Look for an item in the question equal to the difference, or half of it if a debit and credit were reversed.
Decide whether the item belongs in the register or the ledger.
Apply the adjustment to the record that is wrong and recompute the balance.
Check that the adjusted totals agree before you enter your answer.

Common mistakes in Non-Current Asset Register and Control

Saying the register is part of double entry.
Students see it holds cost and depreciation and assume it is a ledger account.
Fix: Remember it is a memorandum record. Only the general ledger has debits and credits.
Journalling a correction when only the register is wrong.
Students assume every difference needs an entry.
Fix: Journal only if the ledger is wrong. If the register missed an item the ledger already has, update the register only.
Adjusting the wrong record.
Students assume the ledger is always right.
Fix: Check source documents. Either record can be wrong.
Forgetting accumulated depreciation on a disposal.
Students remove cost from the register but leave the depreciation line in.
Fix: Remove both cost and accumulated depreciation for the asset sold, then work out the profit or loss.
Listing irrelevant content such as customer details.
Students confuse the asset register with other subsidiary records.
Fix: Stick to asset details: description, location, cost, depreciation, carrying amount and disposal.

Worked examples

Example 1

At the year end, the non-current asset register shows total cost of $482,000 for plant. The general ledger plant cost account shows $497,000. Investigation finds that a machine bought for $15,000 was correctly posted to the ledger but never entered in the register. What is the adjusted register total, and is a journal needed?

Show the solution

Difference = $497,000 − $482,000 = $15,000, with the ledger higher.
The unrecorded machine cost $15,000, which equals the difference.
The ledger already includes the machine, so the ledger is correct.
Add the machine to the register: $482,000 + $15,000 = $497,000.
The registers now agree. No journal is needed, because the ledger was not wrong.

Answer: The adjusted register total is $497,000. No journal is needed, as only the register is updated.

Example 2

A business has vehicles at cost of $60,000 in the ledger. The register shows $60,000 at cost and accumulated depreciation of $24,000. A vehicle that cost $12,000 with accumulated depreciation of $9,000 is sold for $4,000. Calculate the profit or loss on disposal and the register totals after the disposal.

Show the solution

Carrying amount of the vehicle = $12,000 − $9,000 = $3,000.
Profit = proceeds − carrying amount = $4,000 − $3,000 = $1,000 profit.
Register cost after disposal = $60,000 − $12,000 = $48,000.
Register accumulated depreciation after disposal = $24,000 − $9,000 = $15,000.
Carrying amount of remaining vehicles = $48,000 − $15,000 = $33,000.

Answer: Profit on disposal is $1,000. The register shows cost $48,000, accumulated depreciation $15,000 and carrying amount $33,000.

Exam tips

Know the purpose in one line: it records detail per asset and supports control, depreciation and disclosure.
For reconciliation questions, look first for an amount in the question that matches the difference.
In multiple-response questions, select only asset-specific items such as location, cost and depreciation.
Decide whether the register or the ledger is wrong before choosing a journal. Not every difference needs one.
In number entry, check the unit and sign. Enter the adjusted figure that was asked for, not the difference.

Practice questions from Tangible non-current assets

Non-Current Asset Register and Control in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Non-Current Asset Register and Control: frequently asked questions

What is the purpose of a non-current asset register?

It keeps detailed records of each asset, such as cost, location and depreciation. This helps you control assets, calculate depreciation and disposals, and support the financial statement disclosures.

Is the asset register part of the double-entry system?

No. It is a memorandum record kept alongside the ledger. Its totals should agree with the general ledger accounts for cost and accumulated depreciation.

How do you reconcile the register to the nominal ledger?

Compare the register totals for cost and accumulated depreciation to the ledger balances. Investigate any difference, find the cause, and correct whichever record is wrong.

What causes differences between the register and the ledger?

Common causes are additions or disposals recorded in only one place, wrong cost or depreciation amounts, and postings to the wrong account. Checking source documents shows which record is wrong.