Käyttöomaisen

Käyttöomaisen is a Finnish term that translates to "fixed assets" or "tangible assets" in English. It refers to the physical assets of a business that are used in its operations and are expected to last for more than one accounting period. These assets are not intended for resale. Examples of käyttöomaisen include land, buildings, machinery, vehicles, furniture, and fixtures.

In accounting, käyttöomaisen are recorded on a company's balance sheet. They are typically depreciated over their useful lives, meaning their cost is gradually expensed over time to reflect their wear and tear or obsolescence. Depreciation is an important factor in determining a company's profitability and tax liability. The method of depreciation used can vary, with common methods including straight-line depreciation and declining balance depreciation.

The acquisition and disposal of käyttöomaisen are significant financial decisions for businesses. When a company purchases new fixed assets, it represents an investment in its future productive capacity. Conversely, selling or retiring fixed assets can be a strategic move to modernize operations, improve efficiency, or generate cash. The valuation of käyttöomaisen on the balance sheet can be based on historical cost, fair value, or revalued amounts, depending on accounting standards and company policy. Proper management and accounting for käyttöomaisen are crucial for accurate financial reporting and sound business management.