Fixed asset

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Fixed asset, also known as property, plant, and equipment (PP&E), is a term used in accountancy for assets and property which cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, which are described as liquid assets. In most cases, only tangible assets are referred to as fixed.

Fixed assets normally include items such as land and buildings, motor vehicles, furniture, office equipment, computers, fixtures and fittings, and plant and machinery. These often receive favorable tax treatment (deprecation allowance) over short-term assets because they depreciate over time.

[edit] See also

• Long-term assets
• Revaluation of fixed assets
• Fixed Assets Register
• Fixed assets management
• Depreciation
• IAS 16: Property, Plant and Equipment
• IAS 36: Impairment of Assets