Definition of Fixed Assets
Fixed assets are a company's tangible, noncurrent assets that are used in its business operations. The word fixed indicates that these assets will not be used up, consumed, or sold in the current accounting year.
A company's fixed assets are reported in the noncurrent (or long-term) asset section of the balance sheet in the section described as property, plant and equipment . The fixed assets except for land will be depreciated and their accumulated depreciation will also be reported under property, plant and equipment.
Examples of Fixed Assets
Some of a manufacturer's fixed assets include:
- Land, land improvements, buildings
- Machinery and equipment
- Trucks, automobiles
- Furniture and fixtures
- Computer systems