Asset Management

Fixed assets are resources used to operate your institution and are owned for more than one year. Examples of fixed assets typically include vehicles, computers, machinery, equipment, land, and buildings. All fixed assets, with the exception of land, depreciate in value because of actual use or obsolescence. Depreciation is used to show the decline in usefulness of the asset rather than a decrease in its book value. Therefore, the depreciation process includes creating a depreciation schedule, creating and recording depreciation (expense) transactions, and maintaining the history of a depreciating asset.