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Fixed Assets and Their Characteristics (Full Discussion)

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Fixed Assets and Their Characteristics (Full Discussion) – On this occasion, we will start discussing fixed assets. Of course, some people are already familiar when they hear the word fixed assets. Because fixed assets are often mentioned when studying accounting.

Fixed assets are one of the things in accounting lessons. But this time we will not discuss accounting but we will discuss fixed assets. However, even though they have studied it since they were in high school, especially those who study accounting, there are still those who do not understand what fixed assets are.

Fixed Assets and Their Characteristics (Full Discussion)

Let's discuss the meaning first carefully.

Definition of Fixed Assets

Fixed assets are assets owned by a company, such as assets obtained in a form that is ready to use or that has been built with advance formerly. And this has permanent properties and can be used to carry out normal activities within company as well as for a relatively long period of time and also has a material value Enough.

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Or the definition of other fixed assets, namely an economic resource that is obtained and also controlled by the company as a result of a transaction past, one of which is fixed assets used by a company in an operational activity that produces a product or service.

Characteristics of Fixed Assets

For the following discussion, namely regarding the characteristics of fixed assets. For that, let's just get back to discussing and also listening to the explanation that will be explained below.

  1. Has a physical form.
  2. Not for resale.
  3. Having material value, the price of an asset that is quite significant is like land prices, building prices, machine prices and so on.
  4. Can provide many benefits in the future.
  5. Has a long term benefit period (more than 1 year).
  6. Assets can be used more effectively in the normal activities of the company (not for resale, for example, such as products, inventories and investments).
  7. And owned by a company that is not used as an investment.

Properties of Fixed Assets

After the two explanations above have been given, this time there is still more to be explained, namely the nature of fixed assets. In order to be able to provide new information for readers who want to get it by reading this article. Therefore, let's just continue the discussion, which will be explained below.

1. Tangible Fixed Assets

Tangible fixed assets, namely one of the properties of fixed assets that have a physical form, and there are 3 types of tangible fixed assets which include:

  1. Which assets are a source of depreciation or also depreciation, for example, such as buildings or buildings, equipment, inventory, vehicles, production machinery and so on.
  2. Which assets are a source of depletion or depreciation, for example, such as mineral mines, mineral deposits or natural resources and many more. Natural resources against these resources, and therefore natural resources must be able to be allocated in the periods in which both natural resources and mining can produce results.
  3. Assets that do not experience a depreciation or do not experience depletion, for example, such as a place or land where a company building is built and so on.

2. Intangible fixed assets

Intangible fixed assets are properties of assets that do not have a physical form, even though these assets have great benefits for companies which are stated in the form of certain guarantees, for example, such as copyrights, monopoly rights, patents, trademarks and many more Again.

Complete Definition of Fixed Assets and Characteristics

Types of Assets or Assets

There are various opinions about the types of assets or assets. Types of Assets or Assets, including the following:

  • According to the opinion of Haryono Yusup (2003:23) assets are divided into two types, namely:
  1. Current asset
  2. Fixed assets
  • In the opinion of Zaki Baridwan (2004:20) assets are divided into three types, namely:
  1. Current asset
  2. Fixed assets
  3. Other assets

The conclusions from the types of assets above are:

  • Current assets are types of assets that include cash, and other assets, or other sources where available expected to be realized or liquidated for cash or sold over a period of time normal.
  • Fixed assets are one type of tangible assets obtained in ready-to-use or built forms in advance that will be used in the company's operations, do not intend to be sold in the framework of activities normal
  • Other assets, namely assets that cannot be included in other groups, for example, are entrusted to sellers as guaranteeing contracts, buildings under construction, long-term receivables, advances to company officials and others etc.
    There are also groups of types of assets or assets including:
  • Current Assets or Current assets

Some definitions of current assets or assets, including namely

  1. Current assets (English: current assets) in accounting are types of assets that can be used for a short period of time, generally one year.
  2. Current Assets according to the opinion of Alimsyah and also Padji "Current assets, namely a company's assets that can be exchanged for cash in time can be said to be short, generally the time measure used is the business cycle or the financial year, which is included in current assets namely cash, bank checking accounts, short-term investments, accounts receivable, prepaid expenses, money orders, merchandise inventory, and others. etc"
  3. Current Assets in the opinion of S. Munawir (2004; 14), "Current assets are cash or other assets that can be expected to be liquidated or can be exchanged for cash, which one is sold or consumed in the next period (at most within one year or during the cycle of activities in the same company) normal)."

From what has been explained about current assets above, we can conclude that current assets are assets that can be used as money in a short time quite short which in a period of less than one year consisting of cash, current accounts, money orders, trade receivables, inventories, and many more Again. Examples of current assets or assets are cash, receivables, inventories, short-term investments, and prepaid expenses.

Classification of Current Assets or Current Assets

  • According to Abdulah Shahab's opinion, those included in the current assets group include:
  1. Cash
  2. Securities
  3. Bills receivable
  4. Account receivable
  5. Inventory
  6. Expenses paid in advance
  • According to the opinion of S. Munawir who are included in the current assets group include:
  1. Cash
  2. Investment
  3. Notes receivable
  4. Account receivable
  5. Supply
  6. income receivables
  7. advance

So many explanations that can be given regarding Fixed Assets and Their Characteristics (Full Discussion), fixed assets are a wealth owned by the company and fixed assets have several characteristics and also their nature. Hope it is useful ?

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