Interesting information about capital assets

Capital assets are defined as high-value properties that can be found either at a person’s home, or his or her business.

Examples of capital assets are homes, high-class, high-priced jewelry and timepieces, cars, rare paintings and other expensive artwork (such as statues and sculptures), first-edition and hard-to-find books, rare and high-priced sports cards and sports memorabilia, family heirloom, one-of-a-kind antique furniture, auction-worthy musical records, expensive musical instruments, and the list goes. Some other ordinary objects, when valued at an unconventionally high price, such as one-of-a-kind designer gowns, and custom-made appliances can also be treated as capital assets.

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Image source: weknowyourdreams.com

In business, the definition of capital assets is more elastic. For example, office supplies aren’t treated as assets, but as consumable products, unless of course, the business is all about selling office supplies. In small companies, laptops and personal computers are capital assets, but in big ones like BPOs, companies with hundreds of employees, they are consumable products as well.

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Image source: livemint.com

On a related note, there are terms people use when talking about transactions involving capital assets. For example, if people sell capital assets at a higher price than projected, then it’s called a capital gain. The opposite situation is called a capital loss.

Ryan Jacob and his team at CAE specialize in helping clients with their fundamental commodity sourcing and monetizing challenges. For more discussion on on capital assets, follow this blog.

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