By definition, a fixed asset is a resource or good of the company that cannot be easily liquidated (that is, converted into money). It can be tangible or intangible resources.
- Examples of tangible fixed assets: company property, equipment, furniture
- Examples of intangible fixed assets: patents, copyrights, logos and other company brands, as well as shares.
The fixed assets of a company must be included in the balance sheet of a company.
Depreciation and useful life of a fixed asset
The fixed assets of a company lose value over time. By their nature, some may generate long-term income. For this reason, we say that tangible assets are subject to periodic depreciation, while intangible fixed assets are subject to amortization.