Monday, February 11, 2008

Fixed asset

Fixed asset also familiar as property, plant, and equipment (PP&E), is a term used in accountancy for assets and goods which cannot easily be converted into cash. This can be differing with current assets such as cash or bank accounts, which are describe as liquid assets. In most cases, only tangible assets are also called as fixed.

It usually includes items such as land and buildings, motor vehicles, furniture, office tools, computers, fixtures and fittings, and plant and machinery. These frequently receive favorable tax treatment (deprecation allowance) over short-term assets because they depreciate in excess of time.

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