What is a fixed asset?

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.

visit our accounting glossary for more information on all accounting terms.

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