Editing Fixed asset (section)

==Non-current assets==
In modern financial accounting usage, the term ''fixed assets'' can be ambiguous. Instead, the term ''non-current assets'' (used by the IFRS and U.S. [[Generally Accepted Accounting Principles]] (GAAP) [[XBRL]]<ref>{{Cite web|url=http://xbrlview.fasb.org/yeti/resources/yeti-gwt/Yeti.jsp#tax~(id~174*v~6430)!con~(id~4379966)!net~(a~3474*l~832)!lang~(code~en-us)!path~(g~99043*p~0_0_2_0_1)!rg~(rg~32*p~12)|title=Taxonomy Viewer|website=xbrlview.fasb.org}}</ref> reporting taxonomies) is preferred when referring to assets that will not be liquidated in the current fiscal period. Specific non-current assets (Property, plant and equipment, Investment property, Goodwill, Intangible assets other than goodwill, etc.) should be referred to by name.<ref>{{Cite web |title=IFRS - IFRS 3 Business Combinations |url=https://www.ifrs.org/issued-standards/list-of-standards/ifrs-3-business-combinations/ |access-date=2025-04-23 |website=www.ifrs.org}}</ref>

A baking firm's current assets would be its inventory (flour, yeast, etc.), the value of sales owed to the firm from credit extended (i.e. debtors or accounts receivable), and cash held in the bank. Its non-current assets would be the oven used to bake bread, motor vehicles used to transport deliveries, and [[cash register]]s used to handle cash payments. While these non-current assets have value, they are not directly sold to consumers and cannot be easily converted to cash.<ref>{{Cite web |title=A STUDY ON FIXED ASSET MANAGEMENT WITH REFERENCE TO KESORAM |url=https://jespublication.com/upload/2022-V13I1107.pdf}}</ref><ref>{{Cite web |title=Evaluation of Fixed Assets Management |url=https://ijsrm.net/index.php/ijsrm/article/view/503}}</ref>

Non-current (fixed) assets are items of value that the organization has bought and will use for an extended period of time, typically including [[Estate in land|land]] and [[building]]s, [[motor vehicle]]s, [[furniture]], [[office equipment]], [[computer]]s, fixtures and fittings, and plant and [[machinery]].<ref>{{cite web |title=What is fixed asset management |url=https://www.ibm.com/topics/fixed-asset-management |website=www.ibm.com |access-date=14 April 2021 |language=en-us}}</ref> These often receive a favorable tax treatment (in the form of a [[depreciation|depreciation allowance]]) in contrast to short-term assets.<ref>{{Cite web |title=Oracle ® FLEXCUBE Universal Banking Fixed Assets User Guide |url=https://docs.oracle.com/cd/E74659_01/html/FA/FA02_Overview.htm |access-date=2025-04-23 |website=docs.oracle.com}}</ref>

Note that the cost of a fixed asset is its purchase price including import duties, after subtracting any deductible trade discounts and rebates. It also includes the cost of transporting and installing the asset on-site and an estimate of the cost of dismantling and removal once it is no longer needed due to obsolescence or irreparable breakdown.<ref>{{Cite web |title=Property, plant and equipment {{!}} ACCA Global |url=https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/measure-depreciation1.html |access-date=2025-04-23 |website=www.accaglobal.com}}</ref>