Püsivara

Püsivara is the Estonian term for long-term or fixed assets held by a business for use in its operations over periods longer than one year. These assets are not intended for sale in the ordinary course of business and are expected to provide economic benefits for an extended time. Püsivara is part of a company’s non-current assets on the balance sheet, in contrast to current assets such as cash, inventories, and receivables.

The category typically includes tangible assets such as land, buildings, machinery, equipment, and vehicles. It can also encompass intangible assets that are used over several years, such as software licenses and patents, when recognized as long-term assets. The exact scope can depend on the accounting framework adopted by the entity (for example, local GAAP or international standards).

In accounting, püsivara is initially recognized at cost, including purchase price and other directly attributable costs. After recognition, most püsivara is measured using a cost model, with depreciation (for tangible assets) or amortization (for intangible assets) allocated over the asset’s useful life. Land is typically not depreciated. The carrying amount is tested for impairment if there are indications that its value may have fallen. Derecognition occurs when the asset is disposed of or no longer controlled, with any gain or loss recognized in profit or loss.

Financial statements present püsivara as part of non-current assets, with disclosures about depreciation methods, useful lives, and impairment considerations. Tax treatment varies by jurisdiction, but depreciation or amortization is often allowed or required under national tax rules.