käyttöomaisuudeksi

Käyttöomaisuudeksi refers to the Finnish accounting term for fixed assets or property, plant, and equipment (PP&E). It encompasses tangible and intangible assets that a company uses in its operations for more than one accounting period and are not intended for resale. These assets are crucial for generating revenue and are subject to depreciation or amortization over their useful lives.

Examples of tangible fixed assets (käyttöomaisuusomaisuus) include land, buildings, machinery, vehicles, and furniture. Intangible fixed assets (aineettomat käyttöomaisuuserät) can include patents, copyrights, software, and goodwill. The classification of an asset as fixed depends on its intended use and the expected duration of its service to the business.

In Finnish accounting and financial reporting, fixed assets are recorded at their historical cost, which includes the purchase price and any directly attributable costs incurred to bring the asset into use. Subsequent to initial recognition, they are typically carried at cost less accumulated depreciation or amortization, or at a revalued amount if a revaluation model is applied. The depreciation or amortization process systematically allocates the cost of the asset over its estimated useful life, reflecting the consumption of its economic benefits.

Accurate accounting for fixed assets is vital for several reasons. It impacts a company's balance sheet, providing a clear picture of its asset base. Depreciation and amortization expenses affect the income statement, influencing profitability. Furthermore, fixed assets are often used as collateral for loans, and their proper valuation is essential for financial planning and investment decisions. The Finnish Accounting Act and relevant accounting standards provide detailed guidelines on the recognition, measurement, and disclosure of fixed assets.