Fixed assets

What are fixed assets?

Fixed assets are assets that have long-term use in a business, usually longer than one year. This includes tangible fixed assets such as buildings, machinery, vehicles, and inventory, as well as intangible fixed assets such as patents, copyrights, and goodwill. Fixed assets are important for companies because they represent a major source of revenue and production capacity and often require significant investment. Companies must regularly assess the value of their fixed assets and depreciate them. This means gradually depreciating the value of the assets over their estimated useful lives to bring the accounting value of the assets in line with their actual value.