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Accounting & Tax vocabulary · Assets, Liabilities & Equity

Fixed asset

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, fixed asset means: A long-term physical asset that a business uses to operate rather than to sell, such as buildings, machinery, vehicles or computers.

In Turkish: maddi duran varlık, duran varlık, sabit kıymet

How it is used

IFRS calls them property, plant and equipment (PP&E). Fixed assets are capitalised, depreciated and tracked in a fixed asset register. Sales and scrapping of assets must also be recorded.

Example sentences

  1. The new forklift was added to the fixed asset register this morning.

  2. Fixed assets make up more than half of the company's total assets.

Common collocations

  • fixed asset register
  • purchase of fixed assets
  • capitalise a fixed asset
  • fixed asset disposal
  • assetSomething a business owns or controls that is expected to bring future economic benefit, such as cash, receivables, stock, machinery or software.
  • depreciationThe gradual spreading of the cost of a physical asset, such as a machine or vehicle, over the years it is used, recorded as an expense each period.
  • current assetAn asset that is expected to be turned into cash, sold or used up within one year, such as cash, receivables, inventory and prepaid expenses.
  • intangible assetAn asset with no physical form that still has value for the business, such as software, patents, trademarks, licences or customer relationships.
  • impairmentA fall in the value of an asset below the amount shown in the books, recorded as a loss so that the asset is not overstated.

More terms: Assets, Liabilities & Equity

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This page explains English vocabulary for learners. It is not financial advice.