If Other Assets within your Balance Sheet are considered core to successfully operating your business, there is probably a better asset classification you should be using. If not, why are you holding onto this asset?
Overview
Balance sheet classifications include “Other Assets” to cover any other items a company owns to successfully run its business, which cannot be classified as Current Assets, Fixed Assets, or Intangible assets.
Examples of “Other Current Assets” include deferred tax assets, bond issue costs, advances to officers, prepaid pension costs, and prepaid expenses. The scrap value of obsolete equipment is accounted for in current assets.
Long-term prepayments and goodwill representing the amount of money paid for a business above the business’s net worth are considered “Other Fixed Assets.”
Remember, assets that generate more value than they cost are the key to making more money. Don’t distract management’s attention or tie up cash on any assets that don’t contribute to you earning more on the asset than the asset costs.