Põhivarasi

Põhivarasi is an Estonian term that translates to "main assets" or "fixed assets" in English. It refers to the tangible and intangible items that an organization owns and uses in its operations for more than one accounting period. These are not intended for immediate sale but rather for long-term use in generating revenue.

The category of põhivarasi typically includes land, buildings, machinery, equipment, vehicles, furniture, and intangible assets such as patents, licenses, and software. These assets are usually subject to depreciation, a systematic allocation of the cost of the asset over its useful life. Depreciation reflects the wear and tear or obsolescence of the asset.

In accounting, põhivarasi are recorded on the balance sheet as non-current assets. Their initial cost includes not only the purchase price but also any costs incurred to bring the asset to its intended use, such as transportation, installation, and legal fees. The valuation of põhivarasi can be done at cost or at revalued amounts, depending on the accounting policies adopted by the company. Proper management and accounting for põhivarasi are crucial for accurate financial reporting and effective business operations.