Fixed asset
In accounting, fixed asset means a tangible asset held for use in operations over more than one period — property, plant and equipment — carried at cost less accumulated depreciation.
- Layer
- Lexicon
- Defined in
- Lexicon
- Also called
- PP&E
- Components
- 1
Authority
This definition follows ASC 360-10.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- capex (the spend, not the asset)
Components that render this
The concept is not documentation-only. These are the components that name it in their specification, grouped and stated exactly as the catalog states them.
9Accounting core (GL)
Family specComponents that render the terms it depends on
Little in the catalog names this concept outright, but its definition is built out of others that are named. These render depreciation, period, asset.
4Swaps & FX
Family spec5Ledger & tables
Family spec- PeriodPickerFiscal-aware. Never assumes January.
- FluxAnalysisPeriod-over-period explanations.
- ProfitAndLossP&L with period comparison and variance.
- StatementTableThe shared shell: hierarchy, periods, rules.
- StatementToolbarBasis, period, comparison, currency, consolidation.
- BalanceSheetAssets / liabilities / equity, with the balance check.
- DepreciationScheduleBook and tax in parallel. In-service date, not purchase date.
- AdjustingEntryFormTemplated by type. Auto-reverse defaults on for accruals.
- SchedulePreviewWhat the schedules will post, before they post.
- RevenueWaterfallDeferred balance recognizing by future period.
- LeaseScheduleROU asset and liability on diverging curves.
11Payables (AP)
Family spec12Close, controls & consolidation
Family specTerms this one depends on
Also in Fixed assets & leases
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
- Journal entry for an equipment purchaseWhen equipment is bought, debit the fixed asset account for its full cost — price plus delivery and installation — and credit Cash or Accounts payable. Nothing is expensed on the day of purchase; the cost reaches the P&L as depreciation.Entry
- Journal entry for the sale of a fixed assetWhen a fixed asset is sold, debit Cash for the proceeds and Accumulated depreciation for its balance, credit the asset for its original cost, and book the difference as a gain (credit) or a loss (debit) on sale.Entry
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.