A ghost asset lives only on paper. It was lost, stolen, scrapped or sold without the disposal being recorded — so it still sits in the fixed asset register, still carries a net book value and may still be depreciated and insured.
Why it matters
- Overstates assets on the balance sheet
- Can mean paying insurance or property taxes on items you no longer own
- Hides losses and weak controls
- Undermines trust in the register
How to deal with ghost assets
- Find them — a register-to-floor audit with tagged assets.
- Investigate before writing off: check custody, check-outs, repairs and transfers.
- Retire confirmed ghosts through a formal write-off or disposal.
- Close the gap — require disposals to be recorded when they happen.
Example
An audit finds 23 printers in the register that no one can locate. History shows 19 were collected by a recycler two years ago without paperwork; they are retired and the remaining NBV recognized as a loss.
In Asetavo
Missing items surface in every audit's variance report, and disposals record the method, date and gain or loss with an audit trail.