What is considered to be an asset?
An asset is any expense that has a life expectancy of over a year and is usually over £500. Examples of assets are computers and equipment, vehicles and machinery, buildings and land. A ball point pen for instance is an example of an asset as it has a life expectancy over a year, however, as it is a small expense and has no residual value for selling onto a third party, it is not considered an asset and is written off as a stationary expense. It’s very much a discretionary area and hopefully common sense will prevail. We can advise as to which of your purchases can be deemed an asset and produce an asset register as required.
