Fixed Assets Definition
Fixed Assets are a companys long term Tangible Assets.
Fixed Assets are a companys long term assets not expected to be consumed or coverted to cash within the next twelve months. As a result they are classed are a component of a comapnys Non Current Assets found on the balance sheet. Often on the balance sheet they will be listed as Plant, Property and Equipment (PPE).
Fixed Assets are of Tangible form meaning they will be of physical form and hold transactional value. Tangible Assets will also typically have a finite life span, they act in opposite of Intangible Assets which are non physical assets i.e. they cannot be touched.
Fixed Assets will not be held for the purposes of resale but rather to help produce goods and services. Examples of Fixed Assets include:
Fixed Assets are a balance sheet item and are listed as the cost incurred for them. Although the way in which they are treated will vary depending on it type, for example Buildings, Furniture an machinery will be depreciated overtime. On the other hand a Fixed Asset such as Land will be depleted instead.