Editing Fixed asset (section)

{{Short description|Assets and property that cannot easily be converted into cash}}
{{Accounting}}

'''Fixed assets''' (also known as '''long-lived assets''' or '''property, plant and equipment'''; '''PP&E''') is a term used in [[accounting]] for [[asset]]s and [[property]] that may not easily be converted into [[cash]].<ref name="included">{{cite web |last1=Rogers |first1=Karen |title=What Items Are Included in Fixed Assets? |url=https://smallbusiness.chron.com/characteristic-fixed-asset-69126.html |website=smallbusiness.chron.com |publisher=Houston Chronicle |access-date=14 April 2021 |language=en |date=8 March 2019}}</ref> They are contrasted with [[current asset]]s, such as cash, bank accounts, and short-term debts receivable. In most cases, only tangible assets are referred to as fixed.<ref>{{Cite web |title=Current Assets vs. Fixed Assets: What's the Difference? |url=https://www.investopedia.com/ask/answers/032415/what-difference-between-current-assets-and-fixed-assets.asp |access-date=2025-04-23 |website=Investopedia |language=en}}</ref><ref>{{Cite web |last=Sahil |first=Ahuja |date=2014-04-19 |title=Difference between fixed and current assets (with examples) |url=https://www.accountingcapital.com/differences/difference-between-fixed-assets-and-current-assets/ |access-date=2025-04-23 |website=Accounting Capital |language=en-us}}</ref>

While [[IAS 16]] ([[International Financial Reporting Standards#List of IFRS statements with full text link|International Accounting Standard]]) does not define the term ''fixed asset'',<ref>http://eifrs.ifrs.org/eifrs/bnstandards/en/IAS16.pdf {{Bare URL PDF|date=March 2022}}</ref> it is often colloquially considered a synonym for property, plant and equipment. According to IAS 16.6, property, plant and equipment are tangible items that: 
<blockquote>
(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and 

(b) are expected to be used during more than one period.<ref name=":0">{{Cite web |title=IFRS - IAS 16 Property, Plant and Equipment |url=https://www.ifrs.org/issued-standards/list-of-standards/ias-16-property-plant-and-equipment/ |access-date=2025-04-23 |website=www.ifrs.org}}</ref></blockquote>

Fixed assets are of two types:
* those which are purchased with legal right of ownership (in the case of property, known as ''freehold assets''), and 
* those for which the owner has temporary ownership rights for a stated period of time (in the case of property, known as ''leasehold assets'').

A fixed asset can also be defined as an asset not directly sold to a firm's consumers or end-users.<ref>{{Cite web |last=Sinra |date=2023-02-24 |title=9 General Categories of Fixed Assets (With Explanation) |url=https://www.wikiaccounting.com/general-categories-of-fixed-assets/ |access-date=2025-04-23 |website=Wikiaccounting |language=en-us}}</ref>