Tangible assets

Tangible assets

Tangible assets (fixed assets) usually refer to long-lived assets that have physical substance, such as property, plant and equipment. There are three main accounts of tangible assets, including land, plant and equipment and natural resources. Generally, land is detailed in the notes to the accounts rather than shown as a separate item on the statement of financial position.

The characteristics of long-lived assets:

1)      Initial outlay for long-lived assets is significant

2)      Purchase decisions upon long-lived assets are difficult to reverse.