Fixed Asset
From Open Risk Manual
Definition
Fixed Asset. It is a term indicating tangible assets such as real estate, buildings, land, plant, and machinery, bought by the organization for long-term use rather than for resale or immediate consumption.
Fixed assets include intangible assets such as patents, trademarks, brands, intellectual properties, and customer recognition. Fixed assets are retained in the organization for long periods.
A portion of their original cost is written off (amortized) against revenues to reflect their diminishing value over time. In an organization's balance sheet, fixed assets are therefore normally shown at cost, less depreciation charged to date. Certain fixed assets, such as property, can appreciate or lose in value.
