![]() Most Fixed Assets gradually lose value because they have a limited useful life - they 'depreciate', which means that they lose their value. The main categories of Tangible Fixed Assets are: Tangible Fixed Assets are normally grouped into categories, especially for Balance Sheet reporting. The main point about the purchase of a Fixed Asset is that the business will probably own it for some time, in other words, it is not an Expense. Cars, Machinery, Computers, Buildings, Desks) For a small business, £500 is a suggested minimum, and different businesses will have different 'capitalisation' policies.įixed Assets are classified as Assets in the Balance Sheet, not Expenses in the Profit and Loss Account. To be classified as a Fixed Asset, rather than an Expense, the purchase would tend to have significant value. ![]() Examples are machinery, vans and computers. Fixed Assets are business purchases which will be used by the business for a few years.
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