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Slide notes: An Asset Control Code is an object used in the Fixed Asset Register, and it has an attached Depreciation and Disposal Policy. By attaching an Asset Control Code to 1 or many Asset Master Items, all such Asset Items will use the same policy for where regular Depreciation is costed, and where Profit or Loss on Disposal will be transacted to. There will be a minimum of 1 Asset Control Code in the system, but more likely there will be more, and it all depends on the policies we wish to implement for our Asset Register. When we want to make a change to Depreciation or Disposal Accounting, then we can just make the change on the Asset Control Code, and there is no need to change the various Asset Items that use the Code.

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Slide notes: The Definition of an Asset Code is quite easy.

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Slide notes: In this simplified example, we have an Asset Code for each Group of Assets, but of course that is only one example of how we may define Asset Control Codes.

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Slide notes: Therefore, for each Asset in our Asset Register that belongs to the Group of Computers, we will be using the same Depreciation Expense Account, and the same Profit or Loss Account on Disposal.

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Slide notes: Each Asset Control Code has a Depreciation Expense Account, and a Profit and Loss Account for Disposals. The Accounts may possibly appear on multiple Asset Control Codes, if that fits with our policies.

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