This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
Fixed Assets are Assets which are categorized as ‘permanent’ and not intended to be ‘turned over’ in the normal business cycle.
Fixed Assets may be tangible items such as land, buildings, equipment and furniture with a useful business life of greater than one year; or they may be intangible items such as Goodwill and Intellectual Property. Long-Term Investments are also Fixed Assets.
Some companies use the grouping Non-Current Assets to include Tangible Assets and a second grouping grouping Intangible Assets for Intangible Assets (Goodwill and Intellectual Property).
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.