Fixed Assets8 min read

Lot vs pool: where to link each counted fixed asset

Link each counted fixed asset to a register line, lot, pool or hold list. See what the standards allow and what good audit evidence looks like.

CPCON Group
CPCON Group
Fixed Asset Verification Experts
October 20, 2026
Worker puts a barcode tag on yellow equipment while a second worker holds a scanner and a tablet shows asset register lines

At a count, the team finds a physical item. The register has lines. Each item must point to one line, or to nothing yet. If an item points to two lines, the count double-counts cost. If it points to no line, the item is invisible to the books.

Our pillar guide on pooled fixed assets explains the full picture. This article covers one decision: where each counted item links.

What the standards allow

The standards give the accounting unit. They do not give a link rule for a count.

  • IAS 16.9 says the standard does not set the unit of measure. It says it "may be appropriate to aggregate individually insignificant items, such as moulds, tools and dies." [S1]
  • IAS 16.43 says each part with a cost that is significant to the total cost "shall be depreciated separately." [S1]
  • IAS 16.45 says significant parts with the same useful life and depreciation method "may be grouped." [S1]
  • ASC 360-10-35 describes depreciation over the life of "the unit (which may be a group of assets)." [S2]
  • PwC says the group method fits largely homogeneous assets with about the same lives. It says the entity should have quantitative data to support group or composite methods. [S3]
  • Deloitte says composite depreciation is not acceptable under IFRS. It is acceptable under US GAAP. [S4] KPMG says IFRS requires separate depreciation of significant parts. [S5]
  • AS 1105.07 says the relevance of audit evidence depends in part on "the level of disaggregation or detail of information." [S6]

Each counted item links to one of these:

  • Its own register line. The item has its own asset number, or it is a significant part that policy splits out.
  • A purchase lot. The item arrived with others on one purchase order, and the register holds them as one line.
  • A pool. The item is one of many similar, low-value items that policy holds together.
  • A hold list. The item does not clearly fit, so the controller decides.
  • More detail is better evidence. A register line gives the auditor more to test than a lot, and a lot more than a pool (AS 1105.07). [S6]
  • The count team records facts. The controller makes accounting choices. Mixed lives, possible significant parts and items not on the register go to the controller.
  • A hold is a status, not an answer. Every hold item must close before sign-off.
  • The evidence is written down. Each link records what proved it, so the auditor can trace it later.

CPCON uses a set order of checks, set record fields and set tagging choices to make this decision the same way on every site. We agree them with you before the count.

The link decides where the item points. The tag makes that link last. No standard we found sets a tagging rule for pooled items. The choice is between tagging each item, tagging the lot or location, or no tag. Each choice gives a different level of evidence. Items that move often, or that carry their own register line, usually need their own tag.

How to tag pooled furniture

Furniture is the most common pool. Chairs, desks, tables and cabinets often come in large lots, and they move between rooms. That makes it hard to prove that the full lot still exists. A good furniture tag stays on the item for its full life, the team can read it without moving the item, and it links to the room where the item is now. CPCON sets the tag type and position for each furniture type at your site. For tag work, see our asset tagging services.

Cases the controller must decide

  • Transfers between sites. A pooled item turns up at a different site with no transfer record.
  • Partial disposals. The count finds fewer items than the pool quantity. PwC says a normal retirement under group and composite methods usually goes to accumulated depreciation. An unexpected retirement gives a gain or loss in earnings. [S3]
  • Items later found to be significant. One pooled item turns out to be significant. IAS 16.43 is the reference under IFRS. [S1] Under US GAAP, component depreciation is acceptable but not required. [S4]
  • Old tags on retired lines. The team finds a tag for a line that the register shows as disposed.

How CPCON helps

CPCON brings 30+ years of experience and 2,500+ clients, with projects on every continent. We bring the full method: the order of checks, what to record and how to tag each item type. See our fixed asset inventory services.

Tell us about your sites, and we send a written quote.

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CPCON Group

CPCON Group

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