Immovable asset or immovable property is a piece of property tied to the land, meaning we can not physically move it somewhere else. It can be as estate, building, premises, etc. From the company’s point of view, immovable assets are part of tangible assets.
What is categorized as immovable asset?
Everything that is firmly tied to the land (or territory, etc.). It can not be taken away or moved. These include, for example, estate (land, lot), premises or any construction with proper foundations, such as buildings, transport infrastructure and the like.
- plots (building lots, fields, meadows, etc.)
- buildings (houses, buildings, etc.)
- constructions of transport and other infrastructures (roads, walkways, parking, power lines, etc.)
- underground structures (tunnels, cellars, cable routing, etc.)
- above-ground structures (power lines, cableways, bridges, etc.)
Immovable property management
Immovable property must be taken care of, maintained and valorised. Naturally, the amount of efforts invested varies according to the type of property (e.g. a lot vs. building). Lack of regular maintenance causes the wear and depreciation of the property. Therefore, maintenance allows real valorisation of the property as well as valorisation that can be expressed in the accounting (the price and value of the asset increases). In accounting, we distinguish the maintenance according to its impact on the state of the asset:
- technical valorisation
- modification in the construction