Tangible Asset

I. Formal Definition

A physical long-lived asset such as land, buildings, machinery, computer equipment, and furniture, recognised on the balance sheet at acquisition cost and depreciated over its useful life. Tangible assets are the historical core of the asset base for industrial businesses and remain meaningful for cloud-native businesses through data center, office, and equipment holdings. The federation requires tangible assets to be reported by class with the gross carrying value, accumulated depreciation, useful lives, and any impairment charges disclosed under UFMS-001:5.1. Capitalisation thresholds are policy choices documented in the financial statement notes.

II. Etymology

A standard term of accounting practice; the construction stabilised in nineteenth century industrial accounting alongside the depreciation framework.

III. Federation Usage

Federation members publish tangible assets by class with useful lives, depreciation method, and impairment status. Capitalisation thresholds are documented. Material additions or disposals are footnoted in the disclosure pack under MEV-Annex:6.1.

IV. Related Terms

• intangible-asset
• depreciation
• accumulated-depreciation
• capex

V. Authoritative Citations

• UFMS-001:5.1UFMS Article V - Tangible Assets
• MEV-Annex:6.1MEV Annex VI - Tangible Reporting

VI. Citation in BibTeX

@misc{ifo4_glossary_tangible_asset,
  title        = {{Tangible Asset}},
  author       = {{IFO4 Federation Editorial Board}},
  howpublished = {{IFO4 Federation Glossary, slug \texttt{tangible-asset}}},
  year         = {2026},
  url          = {https://ifo4.org/glossary/tangible-asset},
  note         = {Category: Accounting; key: TangibleAsset}
}

VII. Challenge This Definition

Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.