fixed asset

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Related to Long-Lived Assets: Fixed asset, tangible assets

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 ?
For intangibles and long-lived assets, areas in which we lack training in verification procedures, they could be reclassified as "non-verifiable assets.
The accounting model for long-lived assets to be disposed of by sale applies to all such assets, including discounted operations, and replaces the provisions of APB Opinion No.
In the absence of reasonably arrived at market values, a valuation technique would require breaking down specific long-lived assets to the lowest possible level and applying the cash flow generated on a pro rata basis.
Information needed for assessing carrying amounts of long-lived assets is more complex than for current assets.
Therefore, a company should begin assessing whether there are any contractual arrangements or legal requirements associated with the ultimate retirement of its tangible long-lived assets.
For many years, companies and other entities accounted for the disposal or expected disposal of long-lived assets that were a segment of a business using one set of rules and the disposal of long-lived assets that were not a segment of a business using another standard.
However, if the tenant uses the funds to purchase long-lived assets, such as tenant improvements, the deduction must be spread over a period of time.
Accounting for impairments of long-lived assets is an area virtually devoid of authoritative guidance.
SFAS 144 also does not change the provisions established for accounting for long-lived assets in SFAS 44, Accounting for Intangible Assets of Motor Carriers, SFAS 50, Financial Reporting in the Record and Music Industry, and SFAS 63, Financial Reporting by Broadcasters.
The new statement establishes a single accounting model for long-lived assets to be disposed of by sale.
It also proposes to add another new Item 302(d) of Regulation S-K to elicit certain information concerning tangible and intangible long-lived assets and related accumulated depreciation, depletion and amortization.
After deliberating the issue, FASB extended its conclusions to other industries with similar liabilities arising from the development and early operations of some long-lived assets.