What are obsolete assets?

Obsolete assets are items or resources that are no longer useful or relevant due to advancements in technology, changes in consumer preferences, or shifts in market demand. These assets may still exist on a company's balance sheet but have diminished or no economic value, often leading to write-offs or depreciation. Examples include outdated machinery, software, or inventory that cannot be sold. Companies often seek to dispose of or repurpose these assets to optimize efficiency and financial performance.