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A fixed asset, also known as long-lived assets or property, plant and equipment (PP&E), is a term used in accounting for assets and property that may not easily be converted into cash. [1] Fixed assets are different from current assets, such as cash or bank accounts, because the latter are liquid assets. In most cases, only tangible assets are ...
That is, the mark-down in value of the asset should be recognised as an expense in the income statement every accounting period throughout the asset's useful life. [1] The useful life of the asset is determined by taking into account expected usage, physical wear and tear, technical or commercial obsolescence arising from changes in production ...
For a non-current asset (Fixed Asset) to be classified as 'held for sale', all of the following 4 conditions must be satisfied: The asset must be available for immediate sale in its present condition and location; and; The asset's sale is expected to be completed within 12 months of classification as 'held for sale'; and
A fixed asset, often referred to as a tangible asset or property, plant, and equipment (PP&E), is a long-term asset that holds value over time and can be used to generate income.
Depending on its use, a fixed asset may instead be financed by a special revenue fund or a proprietary fund. A capital project fund exists only until completion of the project. [28] Fixed assets acquired and long-term debts incurred by a capital project are assigned to the government's General Fixed Assets and Long-Term Debts.
Only expenditures that result in a recognised asset in the statement of financial position are eligible for classification as investing activities. Financing cash flows: activities that result in changes in the size and composition of the contributed equity and borrowings of the entity. These are important because they are useful in predicting ...
In 2023, Coca-Cola generated $45.754 billion in revenue and reported $10.905 billion in fixed assets. This gives the company a fixed asset turnover ratio of 4.2x for the year. This shows that Coca ...
Total assets can also be called the balance sheet total. Assets can be grouped into two major classes: tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets. [3] Current assets include cash, inventory, accounts receivable, while fixed assets include land, buildings and ...