Synonym: Fixed Asset = Property, Plant and Equipment (PP&E)
The Asset in the form of a physical substance which can not be easily converted into a cash within the Accounting Period.
These are items of value that the organisation has bought and will use for an extended period of time;
Normally include items such as R&D, 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 Assеts (with exception of land) lose their cash value over time which is called Depreciation.
In case of Fixed Assеt is based on Natural Resource its depreciation is called Depletion.
See also
Business / Business Administration / Financial Management / Financial Accounting
[ Asset ] [ Fixed Asset ] [ Intangible Asset ] [ Current Asset ]
[ Depreciation ] [ Profit and Loss (P&L) ]