Legacy Asset


DEFINITION of 'Legacy Asset'

An asset that has been on the company's books for a long period of time. This type of asset has generally decreased in value to the point of a loss for the company. The term comes from the literal meaning of outdate or obsolete.

BREAKING DOWN 'Legacy Asset'

While these assets are generally considered a hinderance, it may be a good time to take another look at them in times of economic downturn. It is possible that they may have new value in a different time or economy. Conversely, it may also be a good time to sell the assets at a reduced price, simply to earn enough money to remain afloat during a recession.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  3. Liability

    A company's legal debts or obligations that arise during the ...
  4. Dangerous Asset

    An asset which, by its nature, creates a substantial risk of ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Book Value

    1. The value at which an asset is carried on a balance sheet. ...
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