The concept of tangible fixed assets is defined as those physical assets of a durable nature that the required to develop their normal activity. For this reason they remain in your equity for a period of more than one year and at the time of acquisition there is no intention to sell them. Unlike the immaterial mobilized, it has a physical entity.
Post the purchase of property, plant and equipment
There are several accounts of the General accounting plan where the elements of property, plant and equipment are collected, which could be structured as follows. You can also see some examples of tangible fixed assets that you can find in each of these accounts.
- Constructions: any industrial warehouse, building, etc.
- Natural assets: rustic farms, urban plots, quarries, mines.
- Technical facilities: used to account for large structures created by constructions, equipment or machinery, which form a unit.
- Furniture: office equipment, furniture.
- Tooling: molds, templates, tools and small machinery.
- Computer equipment: computers, printers, scanners.
- Transport elements: vans, tractors, trucks.
- Other tangible fixed assets: any item that is not included in any of the previous classifications.
It should be clarified, for example, that when a company is engaged in the purchase and sale of printers, for it the printers are not integrated into tangible fixed assets, but rather as part of the stocks. Basically because they are integrated into the permanent structure and they will not be used for the development of normal business activity, since the basic function will be the sale. This leads you to fail to comply with the requirements that are demanded to be part of the tangible fixed assets.
Differentiate tangible fixed assets and intangible assets
El intangible assets or intangible is also made up of the assets of the company, which are part of the structure and which are essential to carry out the activity. They also extend their permanence over the year and are not purchased with the intention of marketing with them.
However, the great difference with property, plant and equipment is found in that there is only an intellectual existence, including research, development, administrative concessions, intellectual property, transfer rights, computer applications or advances for intangible assets.
Both property, plant and equipment and intangible assets are found on the company's balance sheet as part of the asset not current.