fixed asset

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Fixed asset

Long-lived property owned by a firm that is used by a firm in the production of its income. Tangible fixed assets include real estate, plant, and equipment. Intangible fixed assets include patents, trademarks, and customer recognition.

Fixed Asset

An asset with a long-term useful life that a company uses to make its products or provide its services. Strictly speaking, a fixed asset is any asset that the company does not expect to sell for at least a year, but the term often refers to assets a company expects to have indefinitely. Common examples of fixed assets are real estate and factories, which a company holds for long periods of time.

fixed asset

An asset not readily convertible to cash that is used in the normal course of business. Examples of fixed assets include machinery, buildings, and fixtures. A firm whose total assets are made up primarily of fixed assets is in a less liquid financial position, thus entailing greater risk of a big tumble in profits if its revenues fall.
References in periodicals archive ?
Each company purchased all of its noncurrent assets in the month the company was formed.
c)(i) Recommend, based on net present value, whether or not KL should replace its noncurrent assets.
121 concerning whether an allowance account should be utilized when recognizing asset impairment in the held for sale category of noncurrent assets, since the declines in value in these assets are subject to recovery, practitioners probably should consider using an allowance account to offset any loss recognized in income.
Most noncurrent assets of most clients will fall in this category; and, the measurement principles applicable to this category are more difficult to apply.
Practitioner Note: Entities are not required to routinely perform cash flow analyses on all of their noncurrent assets in attempts to determine if the assets should be considered for impairment; only if one or more of the impairment factors defined in SFAS No.
121 is written in away to indicate that noncurrent assets should be considered for impairment at the individual asset level, as a practical matter it seldom will be possible to estimate cash flows resulting from the use of a single asset since most entities do not track cash flows to that level of detail.
The noncurrent assets that are considered for impairment under SFAS No.
If the book value of the noncurrent assets associated with the store exceeds $3,240,000, the noncurrent assets will be considered impaired.