Synonym: Fixed Asset = Property, Plant and Equipment (PP&E)
A type of Asset existing in The Asset in the form of a physical substance which can not be easily converted into a cash within the operation cycle (usually a fiscal year).
It's also called Long-Term Asset.
the Accounting Period.
These are items of value that the organization has bought and will use for an extended period of time;
Normally include items such asas Natural Resource, land, buildings, vehicles, furniture, office equipment, computers, machinery, tools, IT equipment, fixtures and fittings, plant and certain wasting resources e.g., timberland and minerals.
The Financial Accounting regulations assume that all Fixed Assets (with very few exceptions, like land) continuously lose their value over time which is being accounted for as Depreciation.
It is similar to Amortization of Intangible Assets.
In case of Fixed Assеt is based on Natural Resource then its Depreciation is called Depletion.In Financial Management they are written off against profits over their anticipated life by charging Depreciation expenses (with exception of land).
See also
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Business / Business Administration / Financial Management / Financial Accounting
[ Asset ] [ Current Fixed Asset ] [ Intangible Asset ] [ Intangible Current Asset ]
[ Depreciation ][ Amortization ][ Profit and Loss (P&L) ]