AN ASSESSEMENT OF FIXED ASSET MANAGEMENT: THE CASE OF UNITED BANK SHARE COMPANY

Abstract

Abstract According to our pilot study that most private bank in A.A uses only manual or guide for fixed asset managing purpose. Using the above mechanism leads errors in formulas and miscalculation caused by spreadsheets and human errors. The purpose of the research is to analyze existing fixed asset management practice in United Bank S.C and recommend best practice on fixed asset management. And also to identify the factor that affects the bank fixed asset management, as well as to examine policy and procedures of the bank. United Bank is one of the prominent private commercial bank having 87 Branches throughout the country the study focuses in some selected branch located in Addis Ababa. To achieve the objective of the study, all necessary data have been collected using primary and secondary data. Primary source of information has been obtained through interviewing & Distribution of questionnaires. While secondary data also obtained from the bank fixed asset manual, books and various websites. Analysis was conducted through simple statistical method including percentage and ratio. The researcher has used probability sampling and target population for this study were 170 employee’s out of that 86 clerical staffs were selected and data was presented in tabular forms. Analysis was conducted through simple statistical method including percentage and ratio. Finally, optimized fixed asset management prevents overpayment of property taxes and insurance, as well as errors in depreciation calculation result. Existing systems including spreadsheets don’t reflect the latest tax regulations. So, fixed asset managing department can improve on the best practices by selecting appropriate software solutions for their organizations.