A-Z Popular New Study Guide Search »
Assets
 
Types of Asset

4 Examples of a Fixed Asset

 ,
Fixed assets are assets that are likely to produce a future economic benefit. In order to be considered a fixed asset it must be possible to reliably measure the cost of the asset and it must be difficult to convert the asset to cash. The following are common examples of fixed assets.

Property

Property includes land and land improvements. Land is a special type of fixed asset because its value doesn't deprecate over time. Land improvements such as a road can be deemed as part of the land and not deprecated. In some cases they can be deprecated where they have a useful lifespan. For example, a bridge with a lifespan of 25 years.

Plant

Plant refers to buildings and other structures. This is a dated industrial-era term that comes from the manufacturing sector. This is still used by accounting standards to describe any building. For example:
Data Center
Factory
Hotel
Housing
Office Building
Restaurants
Retail Location
Telecom Tower
Warehouse

Equipment

Any equipment, machine, device or other physical entity that produces future value. Again, this is a manufacturing term that is used for all industries. For example:
Appliances
Computers
Energy Infrastructure
Furniture
IT Infrastructure
Machines
Robots
Vehicles

Intangible Assets

It can be difficult to reliably determine a cost of an intangible asset. Likewise, intangible assets often have questionable future value. As such, the criteria for capitalizing intangible assets are quite stringent. Some costs of intellectual property can be considered fixed assets. For example, legal fees for establishing and defending a patent. Likewise, any intangible value that you buy from another firm can be considered a fixed asset because this establishes a cost. For example, if you purchase a trademark from a competitor. Software purchases are fixed assets and certain costs for developing software for internal use can often be considered a fixed asset. In some cases, it is not possible to amortize intangible assets because they are considered to have an indefinite lifespan.
Contractual Rights (e.g. Franchise Agreement)
Copyright
Goodwill
Patent
Software
Trademark
Overview: Fixed Asset
Type
Definition
An asset that is likely to produce future benefit that has an unambiguous cost and can't be easily converted to cash.
Also Known As
Property, Plant & Equipment
PP&E
Capital Asset
Capital
Related Concepts

Asset

This is the complete list of articles we have written about asset.
Asset Tracking
Capital Asset
Collectibles
Current Assets
Data Asset
Digital Asset
Economic Life
Financial Asset
Fixed Asset
Fixed Assets
Fixtures
Goodwill
Home Inventory
Intangible Assets
Personal Assets
Personal Property
Property
Tangible Assets
White Elephant
More ...
If you enjoyed this page, please consider bookmarking Simplicable.
 

Asset

An overview of the common types of assets.

Tangible

The definition of tangible with examples.

Fixtures

The definition of fixtures with examples.

Asset Tracking

The definition of asset tracking with examples.

Examples of Current Assets

A list of the common types of current asset.

Capital Examples

The basic types of capital with examples of each.

Origin Of Money

The origins of money explained.

Physical Capital

An overview of physical capital with examples.

Personal Assets

An a-z list of personal assets.

Capital

A list of common types of capital.

Cultural Capital

A definition of cultural capital with examples.

Social Capital

The definition of social capital with examples.

Human Capital

The common types of human capital.

Bourgeoisie

The definition of bourgeoisie with examples.

Capital Intensive

The definition of capital intensive with examples.

Labor Intensive

The definition of labor intensive with examples.

Consumer Durables

The definition of consumer durable with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map