A fixed asset is a good of the company that cannot become short-term liquidity.

A fixed asset is a good of a company, whether tangible or intangible, which are normally necessary for the operation of the company and are not intended for sale.

The withdrawal of a fixed asset is the elimination of this asset from the assets of companies, it is accounted for from an accounting point of view as a withdrawal.

Classification of fixed assets

The "fixed asset" is classified into three groups:

• Tangible, elements that can be touched, such as land, buildings, machinery, etc.
• Intangible, which includes things that cannot be materially touched, such as patent rights, etc.
• Investments in companies.

Eventually, fixed assets can be written off or sold, either due to obsolescence or technological topicality. The useful life of a fixed asset is the time during which the company makes use of it until it is no longer useful for the company.

Factors that influence the useful life of a fixed asset:

• Use and time
• Technological obsolescence

To deregister a fixed asset of the company, it is necessary to follow a procedure to ensure we do it in the best possible way and always looking for the security of the company.

When companies sell their assets or when they do not expect to obtain future income or benefits from their use, they must write off their net book value and determine the gain or loss arising from the derecognition of a fixed asset. This guide describes how to write off fixed assets in the company.

Considerations for derecognising an asset

• You will not be able to write off an asset with a date prior to the last recorded depreciation.
• Depreciations must be recorded until the month prior to the date of retirement of the fixed asset.
• To sell a fixed asset you must cancel it previously in this transaction; This will allow you to select the asset in sales transactions. The sales invoice must be prepared on the same date the asset was written off.
• When the concept of derecognition is due to the sale of an asset, the accounting policy for the gain or loss due to the termination of the fixed asset will be generated in the transaction for the sale of the asset (sales invoice, sales record, etc.).