käyttöomaisuushyödykkeen

Use of property and assets refers in the Finnish accounting context to the category called käyttöomaisuus. The term covers all non‑current items that are held by a company to generate revenue over a period longer than one year. These assets are distinguished from röyhkeiset varat, or current assets, which are expected to be converted into cash within a year.

Käyttöomaisuus is divided into tangible and intangible groups. Tangible assets include land, buildings, machinery, vehicles and other equipment. Intangible assets cover items such as patents, trademarks, customer lists, software and development costs that are identifiable, controlled by the entity and expected to bring future economic benefits. Depreciation (amortization for intangibles) is applied to spread the cost of the asset over its useful life according to the company’s depreciation policy, as approved by shareholders in many cases. The choice of depreciation method can be straight line, declining balance, or units of production, subject to national and IFRS rules.

Under Finnish GAAP, the carrying amount of a käyttöomaisuus cannot exceed its recoverable amount, a rule aligned with the IAS 36 impairment standard. Companies must test for impairment whenever circumstances indicate that an asset’s recoverable amount may have fallen below its book value. At the end of an accounting period, the balance sheet lists each category separately, allowing investors to assess the long‑term investment in productive resources.

Tax treatment of käyttöomaisuus follows the Finnish consumption and income tax legislation, with depreciation schedules often established separately for tax and accounting purposes. This dual framework ensures that financial statements accurately reflect economic reality while meeting tax authority requirements.