Category: Legislation and compliance

Fixed asset management useful for intellectual property

Fixed asset management can be important for issues regarding intellectual property, such as patents and trademarks. Intellectual property is considered an intangible fixed asset. While it is not physically owned by a company, it is information that has monetary value and contributes to income tax, according to LexisNexis. It's important to include intangible assets in a fixed asset register. Keeping track of these assets is useful for taxation purposes, and there are other situations where knowing the value of intellectual property comes in handy – for instance, if a company needs to file suit for intellectual property theft. Software company Versata…

Read More

Current versus fixed assets

Growing companies will often be in the position to implement fixed asset management. However, there are many confusing aspects to this practice. Assets are generally referred to as property that a company owns, so what's the difference between fixed assets and current assets? Current assets are also known as short-term assets, which means they can be converted into cash within a fiscal year. In general, current assets are inventory the business intends to sell for profit. However, according to Morning Star, current assets may also refer to investments and accounts receivable. Prepaid expenses also count as current assets. In contrast, fixed…

Read More

Continuation of accelerated depreciation tax break still uncertain

Manufacturers, iron and steel companies, oil firms and others have formed a coalition to continue the industry tax break for bonus depreciation. Currently, this bonus hangs in the balance during tax reforms, and the group aims to lobby lawmakers to keep the provision in the tax code, according to a press release from The Cost Recovery Advances the Nation's Economy coalition. The continuation or ending of the tax break will make a difference in how companies manage their fixed assets. Accelerated depreciation allows companies to claim a larger portion of the depreciation value to be claimed early in the cycle, which results…

Read More

Why data security matters in fixed assets

Fixed asset management seems to be the last place that would need data security. After all, it's merely a record of what assets are currently in the books. However, because there is valuable material involved, especially when equipment or furnishings aren't necessarily bolted to the ground, there are security needs that have to be considered. That goes not only towards external security, such as cameras and alarms, but also data security from within the asset accounting software. By taking the right precautions, companies can avoid risky business strategies that end up costing them a lot of money. Understanding the losses To give…

Read More

Fair value accounting’s impact on fixed assets instigates changes

Fixed assets of all kinds have been assessed by their market or "fair" value in the last few decades. It's considered a standard practice in comparison to the other common method of utilizing the historical value of goods. There are many benefits to fair value, in that it allows a more fluid movement of assets as well as a more flexible estimate on the value of a company. Asset accounting software has made many of the associated processes that go with using this value far easier to attain. However, the precise definition of fair value has undergone some scrutiny in…

Read More