Fixed Assets Accounting
The process of accounting for the acquisition, disposition, and management of a company's fixed assets.
Implications
The process of recording, tracking, and managing a company�s long-term tangible assets, such as property, plant, and equipment, ensuring that depreciation, valuation, and disposal are accurately accounted for in financial statements.
Example
Example: A manufacturing company�s accounting department uses fixed assets accounting to track the value of its machinery and buildings, applying appropriate depreciation methods to reflect their declining value over time.
Related Terms
Different from current assets accounting, which deals with short-term assets like inventory and receivables, fixed assets accounting focuses on long-term assets that are not expected to be converted into cash within a year.
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