The term obsolete refers to an asset which is:
- No longer being used
- Outmoded in style or design
- Technologically outmoded by newer technological innovations
Obsolesence is the loss in value of an asset due to loss of usefulness or technological factors; obsolescence describes an asset which is "out of date." Obsolescence is not related to the physical usefulness or workings of the asset.
Obsolete equipment may be taken out of service and written off as an asset.