There are different types of assets which are categorized on a few major factors that include, physical existence of assets, their tendency to be converted into cash and their usage and purpose in a business. These are all the types into which assets are classified:
All the assets that can be touched or seen and have a physical form are named as tangible assets. They hold definitive monetary value with a transactional exchange value. Examples of tangible assets are land, cash, machinery, equipment, buildings, office supplies, stocks and market securities.
These assets cannot be touched. They have no physical form but they add value to the business. They have two types; Intellectual property and Goodwill property. Intellectual property is something unique that you make by using your mind such as a brand name or design. Goodwill property are the elements that shape the reputation of your company like trained employees and working website. Examples of intangible assets are trademarks, logos, patents and permits.
Such assets that can be exchanged for cash or are cash equivalents are called current assets. They appear first on the company’s balance sheet and used to pay off the liabilities. They can be sold easily. Examples of cash assets are short-term deposits, cash equivalents, stock, products and securities.
Fixed or non-current Assets
They are the long-term investments a company makes whose value cannot be known within a year as they are not easily converted into cash. The value of fixed assets may increase or decrease over the years. It cannot be determined at the time that asset is bought.
These are the assets that are required in the daily conduct of a business and its operations. Operation assets are used to generate products and ultimately revenue. They are not for sale to the customers. They are for the ongoing operations of the business which make incomes. Examples are equipment, machines, building, patents and stocks.
Non-operating assets are not needed in the daily tasks and operations of the business but they can produce revenues. Companies buy non-operating assets for several reasons. They buy them to expand the business to build long-term assets and to invest in other businesses. Market securities, vacant land, interest income and short-term investments are some examples of non-operating assets of a company.
So these are a few types of assets whose value can be determined by the experts of property valuation in Dubai. Visit landsterling.com/what-are-the-contents-of-a-plant-and-machinery-valuation-report/ for complete details.