Fixed assets
Here you can read about the general rules for fixed assets.
General information
Government agencies are required to register and keep track of their fixed assets. To be classified as a fixed asset, an asset must:
- Be intended for long-term use in the organisation’s operations.
- Have a useful economic life of at least three years.
- Have an acquisition cost exceeding SEK 40,000.
- Provide benefits to the organisation, either through economic benefits, such as cost savings, or by contributing to the agency’s operational objectives.
Purchases below this threshold, or with a useful economic life of less than three years, are expensed immediately and are not registered as fixed assets.
Tangible Fixed Assets
Tangible fixed assets include machinery, equipment, installations and assets under construction. The acquisition cost includes not only the purchase price but also costs directly attributable to bringing the asset to its intended location and making it ready for use, such as delivery, installation, consultancy services and work carried out by the organisation’s own staff. However, routine servicing and maintenance must not be included in the acquisition cost.
Each asset is normally assessed individually. However, if several similar assets are purchased at the same time, or if several components together form a functional unit, they must be assessed as a whole. Examples include a large number of computers, a fully furnished conference room, or a computer with its associated equipment. If the total value exceeds SEK 40,000, the investment must be registered as a fixed asset.
Disposal and sale of Fixed Assets
Tangible fixed assets include machinery, equipment, installations and assets under construction. The acquisition cost includes not only the purchase price but also costs directly attributable to bringing the asset to its intended location and making it ready for use, such as delivery, installation, consultancy services and work carried out by the organisation’s own staff. However, routine servicing and maintenance must not be included in the acquisition cost.
Each asset is normally assessed individually. However, if several similar assets are purchased at the same time, or if several components together form a functional unit, they must be assessed as a whole. Examples include a large number of computers, a fully furnished conference room, or a computer with its associated equipment. If the total value exceeds SEK 40,000, the investment must be registered as a fixed asset.
When selling a fixed asset, a market-based price must be established based on the prices of comparable used equipment on the second-hand market. The pricing must be documented, and the supporting documentation for the sale must show how the price was determined and how other units within KI were informed of the sale.
When fixed assets are transferred between government agencies, for example when a researcher moves from one university to another, the carrying amount is normally used as the basis for the transfer. It is important to remember that KI owns the fixed assets. It is therefore the department, not the researcher, that decides whether a transfer should take place.
More detailed information