Fixed assets are not expensed when purchased; they are capitalised on the balance sheet and their cost is allocated over their useful life through depreciation. Common useful life assumptions used in UAE businesses: computers and IT equipment (3–5 years), vehicles (5 years), furniture and fixtures (5–10 years), leasehold improvements (lease term or useful life, whichever is shorter). When assets are disposed of — sold, scrapped, or stolen — any gain or loss on disposal must be recognised and treated correctly for both accounting and corporate tax purposes.
See also: Capital Expenditure (CapEx), Depreciation, Balance Sheet
