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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
During the third quarter, $22 million of long-lived asset impairment was recognized on certain assets in Mexico as a result of the strategic evaluation.
First, the FASB recognizes that a PV technique is a common method of measuring fair value for long-lived assets. Next, the Board recognizes the uncertainty involved in measuring fair value as indicated by terms such as "expected present value," "estimated future cash flows," and "uncertain." When a PV technique is used to measure fair value, the following could contribute to the unreliability of these fair value estimates:
Paragraph 29 and its related footnote 17 and the beading preceding that paragraph: Long-Lived Asset to Be Exchanged [begin strikethrough]for a Similar Productive Long Lived Asset[end strikethrough] or to Be Distributed to Owners in a Spinoff For purposes of this Statement, a long-lived asset to be disposed of in an exchange measured based on the recorded amount of the nonmonetary asset relinquished [begin strikethrough]exchange for a similar productive long lived asset[end strikethrough] or to be distributed to owners in a spinoff is disposed of when it is exchange or distributed.
Indeed, even without the slightest color of authority that the proposed procedure would provide, revenue agents have reportedly proposed [sections] 481(a) adjustments for repairs on long-lived assets in tax years closed by the statute of limitations.
Long-lived asset are normally recorded at historical cost.
When the liability is initially recorded, the entity capitalizes a cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset.
Exhibit 1: Guide to Recognizing Long-Lived Asset Impairments
For the full fiscal 2005 year operating income was hit by a net of $255.2 million in special items: $115.3 million in Midwest exit costs, $188.6 million in restructuring costs, $17.7 million in long-lived asset impairment, $33 million in costs related to early debt extinguishment, $19 million associated with Hurricane Katrina, the aforementioned $9.7 million workers' compensation charge and $15.4 million for Canadian dollar hedging.
This article looks at five decisions that companies make throughout the life of a long-lived asset, identifies potential problems in applying SFAS No.
SFAS 143 applies only to enforceable retirement obligations that result from the acquisition, construction, development, or normal operation of a long-lived asset. Examples include a contractual obligation to tear down a manufacturing facility upon retirement or a legal obligation to decontaminate a nuclear power plant at the end of its operating life.
* IMPAIRMENT EXISTS WHEN THE CARRYING AMOUNT of a long-lived asset or asset group exceeds its fair value and is nonrecoverable.