Synonym: Fixed Asset = Property, Plant and Equipment (PP&E)
A type of Asset existing in the form of a physical substance The Asset which can not be easily converted into a cash in easy and fast way within 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 and, buildings, motor vehicles, furniture, office equipment, computers, fixtures and fittings, and plant and machinery. machinery, tools, IT equipment.
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.
See also
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Business / Business Administration / Financial Management / Financial Accounting
[ Asset ] [ Fixed Asset ] [ Intangible Asset ] [ Current Asset ]
[ Depreciation ][ Amortization ][ Profit and Loss (P&L) ]