Püsivarana

Püsivarana is an Estonian term that translates to "fixed asset" in English. It refers to tangible or intangible assets that a company owns and expects to use for more than one accounting period, typically more than one year. These assets are not intended for resale in the ordinary course of business but are used to generate income or support the company's operations.

Examples of tangible püsivarana include land, buildings, machinery, equipment, vehicles, and furniture. Intangible püsivarana can include patents, trademarks, copyrights, and goodwill. The acquisition cost of a püsivarana is capitalized, meaning it is recorded on the balance sheet as an asset rather than expensed immediately. Over time, these assets are depreciated or amortized, reflecting their gradual loss of value due to wear and tear, obsolescence, or passage of time. This depreciation or amortization expense is recognized on the income statement. The management of püsivarana involves decisions about acquisition, maintenance, utilization, and eventual disposal, all of which impact a company's financial performance and position.