Finance
Tangible fixed assets
Tangible fixed assets are long-term physical assets that a company uses in its operations and does not hold for short-term resale, such as machinery, vehicles or office equipment. They are usually capitalised, assigned to a fixed asset account and recognised in value over their useful life through depreciation. In fixed asset accounting, additions, disposals, transfers and value changes are recorded so that the balance sheet and profit and loss account are stated for the correct period and a traceable inventory is supported. A company capitalises a new machine as a tangible fixed asset and posts the annual depreciation automatically through fixed asset accounting.
