Let’s first define this “specific use”. Specific use is determined so that once this client relationship ends, you’re no longer producing a type of good etc., this asset is no longer being used and it cannot be used without significant alterations for another type of service or production process. An asset in this case be both physical and non-physical, i.e. a software solution.

Such an asset that’s taken away from active usage and cannot be used for anything else without modifications should not be carried on the balance sheet. At least not with a carrying value above zero. It has no value for the company as it is and as such, it shouldn’t be carried as an asset with value. 

Easiest way to identify such assets is to do a regular asset count and assess the usage of the asset as well as it merely existing. Remember that it’s not only counting the assets you should be doing, but also estimating their actual useful life remaining (as compared to what’s it set at in your accounting), their condition and if any investment is needed for a replacement, repairs etc. And then it’s also about understanding whether an asset currently not in use can be used for something else, and more importantly, why it isn’t being used so right now.

It’s crucial to have an understanding of your assets, their existence, condition and if the treatment their getting in the accounting is reflecting on the actual situation.